AMP the latest lender to ditch SMSF property lending

AMP the latest lender to ditch SMSF property lending
AMP the latest lender to ditch SMSF property lending

AMP has announced it will discontinue self-managed super fund (SMSF) property lending.

It will continue to support existing SMSF home loan customers, however, from November they will not be permitted to switch to interest-only, internally refinance or extend their loan term.

The announcement follows similar moves from CBA and Westpac in recent weeks.

Westpac stopped SMSF home loans for new customers on 31 July, while CBA announced its ban would take effect from 12 October 2018.

Both Westpac and CBA will continue to support existing SMSF loan customers.

RateCity research director, Sally Tindall, said the writing could be on the wall for SMSF property lending.

“Today’s announcement from AMP comes as a shock to no-one,” she said.

“AMP’s new chairman, David Murray, has been one of the most vocal critics of self-managed super fund property lending,” she said.

In 2014, the Financial System Inquiry recommended that the government remove the exception to the general prohibition on direct borrowing for limited recourse borrowing arrangements by superannuation funds - although Scott Morrison, who was then treasurer, rejected the recommendation.

“Banks are focused on reducing risk in their loan books. In a falling property market, it’s not surprising we’re seeing lenders retreat from this type of lending,” Tindall said.

“Macquarie Bank, Bendigo Bank and Bank of Queensland are now the biggest banks in a dwindling pool of providers offering SMSF property loans,” she said.

List of lenders offering SMSF loans from next month:

Lender

Product

Max. LVR

Advertised rate

Bank Australia

SMSF Residential

80%

5.25%

Bank of Queensland

Business Term Loan

75%

5.55%

Bendigo Bank

SMSF Loan

On assessment

On assessment

Big Sky Building Society

SMSF Limited Recourse Investment Loan

75%

6.43%

Heritage Bank

SMSF - Fully Drawn Loan

80%

5.24%

Hume Bank

Self-Managed Super Fund Loan

70%

5.90%

IMB Bank

SMSF Loan

80%

On assessment

La Trobe Financial

SMSF Residential

80%

5.99%

Lendex

 

On assessment

On assessment

Liberty Financial

SuperCredit

80%

5.99%

LJ Hooker Home Loans

Accelerator SMSF

80%

6.00%

Macquarie Bank

SMSF Property Loan

70%

6.00%

Mortgage House

Home Loan Prime (SMSF - Class 1)

60%

5.09%

Red Rock Mortgages

SMSF residential express

70%

6.29%

Regional Australia Bank

SMSF Housing Loan

80%

5.87%

Resi

SMSF Loan

On assessment

On assessment

Resimac

 

80%

On assessment

Switzer Home Loans

SMSF Loan

70%

6.22%

Yellow Brick Road

SMSF Property Loan

70%

5.97%

Tags: 
Amp Bank Ratecity.com.au

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