The vice continues to tighten around property investors, this time from AMP:
One of Australia’s largest second-tier lenders is suspending new property investor loan approvals until later this year to comply with the bank regulator’s limits.
AMP Bank released a statement today saying it would not be accepting new, or assessing existing, property investor loan applications from today.
The banking division of the wealth management giant said the suspension of new investment lending is expected to last until later this year.
Existing property investment borrowers with AMP are also being slugged with a 0.47 percentage point increase in interest rates, about 20 basis points more than increases announced by three of the major banks last week.
The latest APRA banking statistics for May 2015 show that AMP had grown lending to property investors by 13.1 per cent over the year to $2.92 billion, above the bank regulator APRA’s 10 per cent speed limit…
“Australia’s property market is experiencing high levels of investor property lending growth and we are supportive of the regulator’s intention to slow this growth to appropriate levels,” said AMP Bank’s managing director Michael Lawrence in a statement.
Yet another nail in the coffin of the great investor bubble.
