Via the AFR:
AMP, the nation’s largest financial services group, is banning property buyers using their mortgage as a “piggy bank” for personal spending, escalating lenders’ response to regulatory pressure to rein-in ballooning household debt.
It follows Commonwealth Bank of Australia’s decision to crack down on issuing credit cards to property borrowers, also a response to borrowers using equity in their property to release cash.
AMP said turning the screws on personal lending is “needed to manage our portfolio responsibly”, meet regulatory requirements and adjust policies to the “broader market environment”.
It claims the new policy is for an “interim period only” but does not specify how long.
Cripes. If that spreads then either consumption falls or this craters:
Not great either way.
