In response to regulator guidelines to limit growth in investor property lending across the market to 10 per cent, AMP Bank will increase variable rates on all existing investor property loans by 0.47 per cent per annum from 7 September 2015.
All investor property loan applications that have been approved will be subject to the 0.47 per cent increase on settlement.
In addition, AMP Bank will not be accepting new or assessing existing investor property lending applications from today. This is expected to last until later in 2015, depending on market conditions.
“We appreciate the position this puts our customers in and will be working with our distribution network to actively communicate with them,” said Michael Lawrence, Managing Director, AMP Bank.
AMP Bank remains committed to helping Australians own their homes and, effective 27 July, reduced interest rates for new owner occupied variable loan rates on the AMP Bank Professional Package to as low as 4.12 per cent per annum.
“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,” said Mr Lawrence.
