Mortgage growth remains on track at AMP Bank despite a turbulent marketplace.
The Sydney-headquartered bank reported a 2.8% increase in residential mortgages, year-over-year, lifting its mortgage book to $23.3 billion in the second quarter of 2025. The result underscores a cautious, but steady expansion in home lending, even as AMP navigates a crowded mortgage and lending market, margin management and ongoing economic uncertainty.
“Against the backdrop of this positive momentum, investment markets remain volatile, and we continue to see sustained competitive pressure, as well as accelerating pace of change, driven by AI," said AMP CEO Alexis George. "In this environment, we remain focused on the ongoing execution of our strategy.”
Australia’s housing and loan markets have picked up momentum in 2025, buoyed by two interest rate cuts from the Reserve Bank of Australia (RBA) and expectations of further easing ahead. While that’s welcome news for borrowers and property investors, it’s intensified the fight among lenders for market share. Banks and non-banks alike have trimmed variable and fixed rates in a bid to stay in the game.
At the same time, global uncertainty – from tariff tensions to Middle East unrest to recessionary fears – has kept the RBA and others in wait-and-see mode. That caution may spill over to borrowers too, with some homeowners and investors more likely to sit on the sidelines for now.
For brokers, AMP Bank’s restrained approach to mortgage growth is a sign that lenders remain cautious on volume expansion.
"AMP continues to carefully manage volumes to prioritise margins in the current environment," the lender said in a statement.
The 2.8% rise is modest by historical standards, especially when compared to previous years of double-digit growth, but it reflects a strategic focus on quality over quantity. AMP is continuing to “prudently manage volumes to preserve margins," George said, a move that suggests brokers may need to adapt to tighter-lending appetites.
However, the rollout of AMP Bank GO, a new digital platform, signals potential future upside for broker partnerships. With new features like a small business overdraft already launched and savings products on the horizon, AMP is laying groundwork for product diversification. This may create new referral and packaging opportunities for brokers.
By all accounts, AMP had a record quarter, with platforms net cashflows surging 63.2%, year-over-year, while platforms assets under management rose 5.6% from the previous quarter.
George called the quarter another "standout performance."
But AMP's Q2 figures also indicate that the bank is opting for stability over aggressive growth. Deposits were largely flat, edging down slightly to $20.5 billion from $20.7 billion in Q1, underscoring increased competition for funding. Meanwhile, credit quality remains strong, with loan arrears over 90 days holding at just 0.88%.
This conservative strategy appears aligned with AMP’s broader posture, which continues to emphasize digital innovation and client-centric solutions, including AI-driven advice tools and lifetime super products.
AMP’s results land at a time of heightened complexity in Australia’s property market, with interest rates in flux, economic volatility persisting, a housing shortage and investor sentiment continuing to shift. The measured pace of mortgage growth from a major bank like AMP suggests that housing finance may be entering a more stable, but less exuberant phase.
While demand remains strong, lending standards are unlikely to loosen substantially in the near term. This environment may constrain borrowing capacity, especially for first-time buyers or investors, and continue to support flat-to-moderate growth in property prices across many regions.
