Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

Non-major resumes SMSF lending

One of Australia’s non-major banks has this week resumed lending to SMSF property investors.

AMP Bank will accept investor property loan applications to SMSFs effective 14 December following a temporary withdrawal from the market in response to regulatory growth guidelines.

The return to SMSF lending fulfils the bank’s commitment to return to the market in 2015 and follows its recommencement of non-SMSF investor property lending on 16 November.

Advertisement
Advertisement

Speaking to Mortgage Business’s sister publication SMSF Adviser, Thrive Investment Finance owner Samantha Bright said the SMSF lending landscape has lost its competitiveness since APRA announced its curbs on investor lending.

“It’s not that the banks don’t want to lend; they’re being forced not to lend,” Ms Bright said.

“Before these changes [from APRA], we actually had more players coming into the market and looking at these products. I actually had some small lenders asking me to look at the products they were planning to release.”

Ms Bright said that while it is beneficial that the changes are helping to limit lending to the most suitable SMSF borrowers, the smaller number of lenders has meant longer turnaround times and reduced competition.

“It’s gone from having a pool of lenders to barely a puddle,” she said.

[Related: AMP delivers solid mortgage growth, increases margin]

Non-major resumes SMSF lending
mortgagebusiness

Latest News

According to data analysis agency GlobalData, one in four ADIs could exit the market within the next five years, as unemployment levels rise...

The economic consequences of the coronavirus pandemic have prompted more non-bank lenders to make changes to their credit policies, which in...

LaTrobe Financial has announced it anticipates a “strong and sharp” rebound for the housing market, as well as for employment conditions...

FROM THE WEB
podcast

LATEST PODCAST: The rush to save small businesses

Do you think Australia will move to quantitative easing this year?

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of Mortgage Business.

Read more

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.