AMP Bank will increase variable rates on all existing investment property loans by 0.47 per cent per annum from 7 September 2015, according to a statement released yesterday.
All investor property loan applications that have been approved will be subject to the 0.47 per cent increase on settlement, AMP Bank stated.
AMP Bank will also not be accepting new or assessing existing investor property lending applications from 29 July 2015 onwards.
This is expected to last until later in 2015, depending on market conditions.
“Australia’s property market is experiencing high levels of investor property lending growth and we are supportive of the regulator’s intention to slow this growth to appropriate levels,” said Michael Lawrence, managing director at AMP Bank.
“We appreciate the position this puts our customers in and will be working with our distribution network to actively communicate with them.”
The move follows a broader crackdown on investor lending, with several SMSF lenders tightening their conditions.
As reported in mid-June, banks including NAB, ANZ and Bankwest, have made changes to their lending practices to slow down rates of investment and interest-only lending.
More specifically, banks including NAB and ANZ, have ruled out providing property loans for SMSFs.
AGreed Deano, how is jacking up the rates on an existing investment loan meant to discourage new entrants from entering the investment property market? Bank stocks should all have jumped sharply on this little gem of an opportunity. Profits to rise even further. Lets see them kill of the housing sector, and with it the jobs of numerous trades, etc. Flow this on to the already struggling retail sector and we really will have the economy going backwards. Num nuts indeed.
Well here’s another classic example of banks making a profit grab using “The Regulators” as an excuse. APRA you need your head read as this is the most ridiculous effort to curb investment lending aver seen. Its now open slather for all lenders in Australia to stick it into borrowers. Hopefully a few second tier and quality non banks keep competition alive as I am totally done with the majors.The media need to get strongly involved on this one and the majors deserve to lose 70% of there books to other fairer lenders in this country. Its time to wake up Australia as all borrowers are looking to get screwed over due to some num nuts decision at APRA to give lenders the green light. Now its time for those num nuts to back pedle and caution the banks on the profit grab.