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Non-major bank set to further tighten SMSF lending policy

Non-major bank set to further tighten SMSF lending policy

tighten SMSF lending policy
Miranda Brownlee
31 July 2018 — 1 minute read

A non-major bank has revealed it will make pricing and policy changes to its SMSF property loans, including the removal of some current options for new clients.

AMP Bank will no longer offer interest-only payments as a payment option on new SMSF applications received from 7 August 2018.

Any loan that has settled prior to 6 August 2018 will still have interest-only payments available as an option.

Effective 3 August, AMP Bank will also be making pricing changes for new SMSF loans, increasing the variable interest rate for its AMP SuperEdge loan product by 0.25 per cent to 6.44 per cent.

It will also be increasing fixed rates for new SMSF loans by 0.80 per cent.

An AMP spokesperson clarified that pricing and policy changes apply to new SMSF loans only.

“These adjustments are in response to recent market changes as well as the Bank’s focus on managing its portfolio responsibly while balancing this with the needs of our customers, shareholders and regulators,” said the spokesperson.

This latest update follows a spate of changes to SMSF lending policy across banks recently, with Westpac announcing it would pull out of SMSF lending completely across all of its brands, including St.George, Bank of Melbourne and BankSA

Macquarie has also made pricing changes to its SMSF loans, announcing a 0.10 per cent increase in variable rates across its investment and SMSF loans. 

 

Non-major bank set to further tighten SMSF lending policy
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