After pulling out of the market to meet its regulatory obligations, AMP Bank has announced that it is back and willing to lend.
From Monday, 27 November, AMP will once again accept refinance of investment property loans.
The announcement comes with new LVR limits. The maximum LVR for AMP SuperEdge loans (SMSF loans) is increasing to 70 per cent including LMI.
The maximum LVR for all other loans with a predominant purpose for investment property (purchases and refinances) is increasing to 80 per cent including LMI.
The non-major lender is also making changes to its cash out policy, including the need to provide evidence of what the money will be used for, depending on the cash out amount.
Evidence is required for cash out amounts over $100,000.
Cash out for the purpose of future investment is limited to a maximum of $100,000.
Evidence will be required for amounts over $100,000, and AMP will advise what would be considered acceptable on a case-by-case basis at the time of the request.
For loans with LVRs higher than 80 per cent, the cash out component is limited to 20 per cent of the security value.