AMP offers property investors some respite
The bank has eased the investment lending restrictions it put in place at the beginning of the year.
AMP has announced an end to its ban on refinancing investment property loans, the Australian Financial Review has reported. The lender also announced it would reduce the minimum deposit amount for investors.
The bank put the restrictions in place 10 months ago in response to tighter lending guidelines handed down by the Australian Prudential Regulation Authority (APRA).
"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," an AMP spokesman said, according to the AFR.
AMP decreased the minimum deposit amount both for self-managed super fund loans and all other investment loans. The minimum deposit for SMSF loans has been reduced from 50% to 30%, while the minimum deposit for other investment loans has fallen from 50% to 20%.
However, in the midst of the eased restrictions, AMP announced it would from today require all loan applicants to answer 14 questions about their monthly basic and discretionary spending.
"Without this additional information, deals won't progress to the next stage of assessment and we may also request further information at our discretion," a spokesman told the AFR.