Powered by MOMENTUM MEDIA
subscribe to our newsletter

Mortgage competition ‘intense’ as discounting continues

A non-major lender has commented on the fierce competition for owner-occupied home loans as it looks to ramp up its distribution through brokers and financial planners.

AMP Bank grew its overall mortgage book by five per cent over the 2015 financial year, but admitted the result was “constrained by lower investment property lending”.

The non-major’s new retail mortgage business from advisers was steady at 24 per cent. Growing AMP Bank home loans through its advice network remains a priority for the group.

In a trading update, the ASX-listed lender said it would “maintain focus in both aligned adviser and mortgage broker channels.”

AMP noted that lower mortgage growth in the second half of the 2015 financial year reflected the temporary cessation of investment property lending to meet regulatory growth limits.

Advertisement
Advertisement

AMP Bank has now recommenced investment property lending, including SMSF property loans.

Owner-occupied loans made up 71 per cent of the AMP’s mortgage portfolio at 31 December 2015, while investment property loans were 29 per cent.

“Residential mortgage competition, particularly in the owner-occupied market, remained intense in the period with continued market-wide discounting,” the group said.

“Management continues to target lending growth at or above system, subject to funding, return on equity hurdles, and regulatory growth caps.

“AMP Bank’s credit policy remains conservative and has been strengthened during this period of intense competition.”

PROMOTED CONTENT


[Related: AMP Bank names new boss]

Mortgage competition ‘intense’ as discounting continues
mortgagebusiness

Latest News

OPINION: Debt-to-income ratio limits: do they help, or hinder? With the average property in Australian capital cities now over $700,000, l...

The Treasurer has met with regulators to discuss the housing market and consider whether “carefully targeted and timely adjustments” ...

The platform has become the first private sector exchange accredited under the ​​Trusted Digital Identity Framework. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

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