AMP Bank has introduced two new changes to its lending policy, both of which affect owner-occupier borrowers.
For an “interim period,” the lender has ceased cash-out on refinanced owner-occupied interest-only loans. This means affected mortgage holders cannot borrow additional capital for 'investment purposes'.
Additionally, the $750,000 cap on the current pricing special for Professional Package loans has been lifted. The variable rate for all new owner occupied principle and interest Professional Package loans from $250,000 will now be 3.79% p.a. This offer is being put in place for a limited time, the bank said.
These changes came into effect on 5 July.
“We are managing our loan book in a very active market and we’re committed to managing our portfolio responsibly and within regulatory limits while balancing this with the interests of our customers,” the bank said in a note to brokers.
Related stories:
Another non-major raises investment rates
Commercial lender doubles yearly loan volume
Non-major hikes IO rates by up to 80 basis points
