AMP raises rates for property investors

AMP has announced changes to investor lending saying it was to manage its portfolio responsibly and align with regulatory requirements.

Its variable interest rates for new and existing investment property loans will increase by 35 basis points.

For all new investor property loans, the maximum loan-to-value ratio (LVR) is reducing to 50 percent.

This change applies to all new loans with an investment property as security and includes loans to SMSFs.

The changes to interest rates are effective 23 June 2017 for new customers and from 26 June 2017 for existing customers.

The LVR change is from 21 June for new investment property loans and 1 July for SMSF investor loans. Sally Bruce, Group Executive AMP Bank, said the measures are needed to operate within its regulatory obligations.