In Support to APRA Guidelines AMP Bank Puts Breaks to Investor Lending
So as to comply with APRA’s guidelines, AMP bank released a statement today saying that it will not accept new investor applications from today onwards.
This hierarchy will be followed until later this year. Along with it for the existing borrowers for property investment with the bank will be charged 0.47 percentage point increase in interest rates, about 20 basis points more than increases announced by three of the major banks last week.
The APRA stats released for May showed hat AMP had grown lending to property investors by 13.1 per cent over the year to $2.92 billion, exceeding APRA’s 10 per cent limit. This forced AMP to take the step and follow APRA guidelines.
AMP Bank’s managing director Michael Lawrence said in a statement that, “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. That growth rate is above all the major banks except for National Australia Bank, which grew property investment loans by 14 per cent”.
Macquarie Bank reported a massive 86.7 per cent annual increase in investor loans to $8.8 billion, but CLSA banking analyst Brian Johnson told ABC News Online that figure was inflated and not directly comparable with AMP’s figure.
“Macquarie Bank has been actually buying home loan portfolios that have been originated by other organisations,” he explained.
News Source: http://www.abc.net.au/news/2015-07-29/housing-market-close-to-peak-as-investor-limits-bite/6656000