Non-major raises investor rates

by AB19 Jun 2017
AMP has announced changes to investor lending to manage its portfolio responsibly and align with regulatory requirements.

The pricing and policy changes for investment property loans, include:
  • Variable interest rates for new and existing investment property loans will increase by 35 basis points
  • For all new investor property loans, the maximum loan-to-value ratio (LVR) is reducing to 50%. This change applies to all new loans with an investment property as security and includes loans to SMSFs
The changes to interest rates are effective 23 June 2017 for new customers and from 26 June 2017 for existing customers. LVR change is from 21 June for new investment property loans and 1 July for SMSF investor loans.

Sally Bruce, Group Executive AMP Bank commented: “These measures are needed to ensure we operate within our regulatory obligations.

“We’re committed to managing our portfolio responsibly while balancing this with the interests of our customers.

“We are managing our loan book in a very active market and these changes follow recent shifts in competitor activity.  We will continue to take the necessary steps for sound management of our regulatory requirements,” she said.

COMMENTS

  • by Marty McDonald 19/06/2017 12:58:36 PM

    That's it. They are off my panel until they show some respect to their existing customer. How does raising their back book by 0.35% effect their 30% IO and 10% Inv speeding limit caps? ANZ is in the same boat. Gouging.

  • by Broker Matt 19/06/2017 1:13:25 PM

    Clear sign they don't want business and want to take advantage of a price grab

  • by keymeister 19/06/2017 2:19:17 PM

    What's sort of idiot do my clients think I am - having recommended AMP ..... luckily at the time I recommended them I did point out that they had an unusual concept of customer service and made it clear that it was only a unique P.O.D. that justified the recommendation. Wouldn't you hate to be an AMP BDM