AMP Bank quits investor lending in unfolding APRA fall-out

AMP Bank has announced it will be temporarily pulling out of all future investment lending in response to APRA crackdown.

“We appreciate the position this puts our customers in and will be working with our distribution network to actively communicate with them,” Michael Lawrence, the managing director, AMP Bank said.

The non-major will ialso ncrease variable rates on all existing investor property loans by 0.47% per annum from 7 September 2015

“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 told Australian Broker Online.

AMP Bank is a small lender with 100,000 customers, many of whom are clients of AMP's larger financial planning arm.

According to APRA figures, its housing investor loan book is worth around $2.9 billion.

Latest official figures show AMP's housing investor loan book expanded by more than 13 per cent in the year to May, faster than APRA's 10 per cent speed limit.