AMP Bank moves to restrict lending to property sector
AMP Bank has joined other large Australian banks in moving to restrict lending to the property sector by ceasing to make new loans to new property investors and raising interest rates for existing investor customers. Today, AMP stated that it will increase variable interest rates for all investor borrowers by 0.47 percentage points, significantly more than recent rate rises from its larger rivals. Furthermore, AMP will also cease accepting or assessing new loans for property investors at least until the end of this year.
AMP Bank will stop writing new loans to property investors and is jacking up interest rates for existing investor customers sharply – the most dramatic bank response so far to a clampdown on lending to landlords.

AMP on Wednesday said it would increase variable interest rates for all its investor borrowers by a hefty 0.47 percentage points, significantly more than recent rate rises from its larger rivals. The rise will increase the rate on a "basic" loan to 4.97 per cent.

AMP will cease accepting or assessing new loans for property investors. Credit: Bloomberg

More drastically, AMP will also cease accepting or assessing new loans for property investors from now on. It expects the freeze on new lending to continue until later this year, "depending on market conditions".

Both moves are in response to the Australian Prudential Regulation Authority's requirement that housing investor loan growth not exceed 10 per cent, AMP said.