AMP abandons mining town mortgages

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From the AFR:

Suburbs on the outer fringes of the nation’s capital cities are the next targets for nervous lenders tightening borrowing conditions for house buyers, according to confidential documents.

AMP, the nation’s largest diversified financial services group, is tightening lending limits and borrowing criteria for about 25 cities and outer suburbs, typically about one hours commute from the central business district, including Singleton, Morwell and Altona.

Cities include those hit hard by the mining downturn, such as Broken Hill, NSW; Gladstone and Emerald, in Qld, where dwelling construction started during the boom are being launched into flat markets.

Extract from AMP advice to brokers.

That looks purely mining bust driven to me.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.