Thursday, October 1, 2020
International

AMP Bank joins crackdown on property investors

AMP Bank is the latest lender to hit property investors with higher interest rates and tighter borrowing restrictions, as the prudential regulator’s clampdown on the property market continues to bite.

AMP today said it would be hiking variable rates for new and existing investor loans by 35 basis points on Friday.

At the same time, new borrowers who come to AMP for an investment loan will need to stump up a minimum deposit of 50 per cent. Loans backed by an investment property will also be subject to the tougher restrictions.

“These measures are needed to ensure we operate within our regulatory obligations,” AMP Bank chief executive Sally Bruce said.

“We are managing our loan book in a very active market and these changes follow recent shifts in competitor activity. We will continue to take the necessary steps for sound management of our regulatory requirements,” Ms Bruce said.

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