AMP Bank announces it will again lend to investors
It’s good news for investor borrowers, as AMP Bank has announced it will begin approving mortgages for investment purposes once again.
The news comes after the smaller home loan lender announced in late July that it will no longer accept any new or existing investor loan applications. AMP Bank was following the moves of other banks who had introduced tougher LVR lending requirements and higher interest rates for investors, in an attempt to reduce their investor loan books to under 10% growth each year.
In a statement on its website, AMP Bank said it will begin accepting investor property loan applications from 16 November. “The return to investor property lending is in line with AMP Bank’s commitment to return to the market in 2015.”
However AMP Bank said that there would be continued restrictions on investor property lending to self-managed superannuation funds (SMSFs) and is expected to begin SMSF lending once again later in 2015.
On top of the tightening of restrictions for investor borrowers, in recent months home loan lenders have also increased their standard variable rates to both investors and owners occupiers to meet a capital building requirement by APRA. The lenders that have imposed these higher rates include the big four banks Westpac, CommBank, NAB and ANZ and smaller lenders like Big Sky, Citibank and ME. We will be watching the market closely to see if any other lenders raise rates.
If you’re in the market for a new home loan, kick off your search with our home loan comparison tool here.