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Non-major bank pulls out of investment lending

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Julia Corderoy | 29 Jul 2015, 11:14 AM Agree 0
A non-major bank has announced it will no longer be accepting new or assessing existing investor property lending applications from today
  • Brissie Broker | 29 Jul 2015, 11:41 AM Agree 0
    Ouch! I feel for the existing investment customers at AMP, many of whom now cannot refinance due to more restrictive policies coming into place.
  • Terry S | 29 Jul 2015, 11:49 AM Agree 0
    Another fair weather lender.
  • Tony | 29 Jul 2015, 12:03 PM Agree 0
    The measures are to curtail investment lending growth. How can bumping up the rate on EXISTING investment loans help the situation?
  • Bottom Line.... | 29 Jul 2015, 12:25 PM Agree 0
    Spot on Tony! Hitting existing investment borrowers is profit gouging - nothing else. If it were to curtail investment lending growth, then it would only apply to new applications.
    Another major stuff up by APRA - which seems to be becoming common place these days.
    Good luck ever trying to get back into the investor market AMP. Once out, it'll take 10-20 years before brokers are game to use AMP again for investment properties. If they pull out when times are tough, who's to say they wont pull out when times are tough again.
    APRA have given the big 4 a leg-up.
  • What a Joke | 29 Jul 2015, 12:55 PM Agree 0
    AMP punishing existing Investors is crazy.
    Plus it makes us as brokers look bad.
    Then they discount the Owner Occupied loans to increase this business.
    Why would anyone trust you AMP???
    Next week Owner occupied loans might go up 1%?
  • Papery | 29 Jul 2015, 02:25 PM Agree 0
    No problems with current policies & pricing for new borrowings, but penalising existing borrowers?????

    And I bet AMP will not foregoe clawbacks for anyone trying to refinance out.....where's the WatchDog that puts these restrictive & unfair policies under the microscope!!

    Helloooo... Consumer Affairs....Sam Dastyari ACA....Choice....anyone??!!
  • Macarthur Broker | 29 Jul 2015, 02:27 PM Agree 0
    Unconscionable Conduct as far as I am concerned. From both AMP & APRA. APRA will need to held accountable for those hurt by the property crash of mammoth proportions that they are hell bent on engineering!
  • Opportunist | 29 Jul 2015, 03:13 PM Agree 0
    AMP is probably trying to reduce or rebalance their book ratio of investment loans...
  • Kym | 29 Jul 2015, 03:17 PM Agree 0
    Why should I pay for the influx of overseas investors!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
  • Sydney Broker | 29 Jul 2015, 03:40 PM Agree 0
    I wonder if the increase on their existing book is to get existing investment loans off their book i.e. adjusting their investment exposure? They will hope that the reducing is o/o rate will somehow assist with this "adjustment"?
  • Broker | 29 Jul 2015, 04:16 PM Agree 0
    I've been accredited with AMP for over 12 years, they have never given me a reason to write a loan with them, looks like nothing has changed!
  • I love Banks | 30 Jul 2015, 12:27 PM Agree 0
    WOW. In 15 years in this industry I’ve seen some slack moves by lenders but this is by far the worst! If AMP has over their 10% allowed in investment lending then fine they must stop investment lending, but to increase their existing book 47bp is straight out highway robbery. Any existing AMP client that has a loan of over 80% either sells their investment or pays the new rate. You would have to think it’s uneconomical to refinance and pay LMI again. I hope they lose every investment loan that is under 80% to another lender. I also read that they won’t be passing on a lower rate to their existing owner occupied clients as the article says “AMP will reduce interest rates for new owner occupied variable loans”. Very slack AMP.
  • Matt | 30 Jul 2015, 02:47 PM Agree 0
    To say that this is ridiculous is an understatement. You would think AMP will have a hard time re-entering the investor market next year when they return however the fact is that brokers have short memories. Look at Macquarie who pulled out of lending during the GFC and are now back bigger than ever. Unfortunately AMP may never feel the wrath they deserve.
    I am surprised there has not been more press about APRA in all of this. They are treading on dangerous ground by intentionally trying to cause the property market in Sydney to burst. If they are successful then it will lead to many Australians possibly losing their homes/ not being able to settle on investment properties they had purchased off the plan, and the construction industry will slow, causing in effect an economical slowdown or at worst a recession. Times are not that rosie, and APRA flexing their muscel with an industry that provides such strong economical stimulus is a mistake.
    APRA should instead have tried to limit banks lending in Sydney solely and in a much less aggressive fashion. They should have made known their intentions to the public more thoroughly so that those that have purchase one of the several thousand properties off the plan could have had the opportunity to better analyse their personal situations. Add to that a restriction to non resident lending and the problem starts to take care of itself.
    There will be many many Australians that will not be able to settle on properties they had previously committed to in the near future. Watch then for the furore to begin.
  • Macarthur Broker | 30 Jul 2015, 04:03 PM Agree 0
    Well said Matt, I have a very bad feeling about the implications of all this. If APRA were worried about the property bubble bursting it will be nothing compared to price crash they are doing their best to engineer. For those of us who have been around a while we know the bubble would have deflated slowly if it was allowed to. As it stands APRA and the ridiculous response from some of our so called responsible lenders will cause a catastrophic property crash which will hurt many people. Will APRA be interfering then to pick up the pieces. I think not!
  • James S | 30 Jul 2015, 08:39 PM Agree 0
    Another disaster for this group. Good luck to staff
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