AMP Bank decreases deposits required for SMSF property borrowers

AMP Bank decreases deposits required for SMSF property borrowers
AMP Bank decreases deposits required for SMSF property borrowers

The AMP Bank is lifting its ban on refinancing investment property loans.
"The lending market remains very competitive and AMP Bank continues to respond by adapting its lending practices where necessary to provide the best conditions for our customers and for managing our growth," a bank spokesman told Fairfax Media.

AMP Bank only has one per cent of property loans but the group is one of the biggest players in self-managed super funds, which invest heavily in residential and commercial property.

AMP Bank is also reducing deposits.

The bank said it had imposed the tougher lending conditions to meet strict lending guidelines by the Australian Prudential Regulation Authority.

It is decreasing deposits for self-managed super fund loans from 50 per cent to 30 per cent of the loan.

Minimum deposits for all other loans "with a predominant purpose for an investment property purchase or refinance" are dropped from 50 per cent to 20 per cent.


All loan applicants will from today be asked to provide detailed answers to 14 questions about basic and discretionary spending on dozens of household items.

Information required about basic monthly living expenses includes spending on clothing, footwear, cosmetics, transport, groceries, and home and contents insurance.

Discretionary living expenses covers spending such as dining out, entertainment, holidays, pay TV, nannies and education, including outside school hours care, private school fees and books.

 

Tags: 
Amp Bank Refinancing

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