Another bank drops all SMSF loan products
Following the spate of major banks that have dropped their SMSF lending products, another bank has announced that it will remove its SMSF loan product next month.
AMP has announced that from 20 October 2018, its SMSF loan product SuperEdge Loan will be removed from sale.
In a public update, AMP stated that all applications for AMP SuperEdge Loans lodged prior to 20 October 2018 will be assessed and reviewed under current policies.
From 10 November 2018, existing AMP SuperEdge Loans will not be permitted to switch to interest-only repayments, internally refinance or extend their loan terms.
Existing AMP SuperEdge loans will continue to be able to switch to principal and interest ahead of their scheduled switch date, switch to a fixed rate and reduce their loan balance, AMP stated.
This follows recent announcements from Westpac and CBA that they too would be exiting the SMSF loans space.
In early August AMP tightened its lending policies for SMSF property loans, removing interest only payment options for new loans.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.