AMP recommences accepting new investment property loan applications from Monday 16 November 2015AMP have announced that they will now (16 November 2015) be accepting new investor property loan applications. This is further signs that investor lending is returning to normal, after news that Bankwest has now increased its maximum loan to value ratio to 90% for investor loans. AMP had ceased lending to investors entirely (except when the investor loan was secured against a owner occupied property) as a response to the Australian Prudential Regulatory Authority (APRA) crackdown on investor lending growth above 10%.
AMP is now lending to 90% loan to value ratios, plus lenders mortgage insurance, for investment loans. AMP has stated that its investor loans are replicas of its current product range but with different (higher) interest rates.
Despite the crackdown by APRA there has continued to be lenders that have offered high loan to value ratio loan for investors. However, AMP returning to the investor loan market is further good news for property investors and homeowners that the property market and loan market are within regulator’s expectations. Now we await the Reserve Bank of Australia to stimulate sub-optimal economic growth with a cut to the interest rates.
AMP has also announced that it expects to recommence SMSF investor property loans later this year. This will be another win for people’s choice of investment options within their self managed super funds.
Don’t delay act NOW!
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