Bank has announced it will be pulling out of all investment lending at this point in time, in response to regulator guidelines to curtail investor growth.
“We appreciate the position this puts our customers in and will be working with our distribution network to actively communicate with them,” Michael Lawrence, managing director, AMP Bank said.
This is expected to last until later in 2015, depending on market conditions.
In addition, the non-major will increase variable rates on all existing investor property loans by 0.47% per annum, from 7 September 2015. All investor property loan applications that have been approved will be subject to the 0.47% increase on settlement.
However, effective 27 July, AMP will reduce interest rates for new owner occupied variable loan rates on the AMP Bank Professional Package, starting at 4.12%.
“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,” Lawrence said.