Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
AMP Bank exits non-resident lending

AMP Bank exits non-resident lending

AMP Bank has classified foreign borrowers as “unacceptable”, while also cracking down on overseas income sources and currencies used for lending purposes.

According to a statement of credit policy changes provided to Mortgage Business by AMP, non-resident borrowers are now classified as an “unacceptable borrower type, unless a spouse/de facto is a citizen or permanent resident of Australia or New Zealand and a borrower of the loan”.

The bank has also implemented a two-tiered system for foreign currencies as part of new LVR restrictions.

Advertisement
Advertisement

Where foreign income is used for serviceability from a tier 1 currency – the Canadian dollar, the British pound, the Hong Kong dollar, the Japanese yen, the New Zealand dollar, the Singapore dollar and the US dollar – the maximum LVR is now 70 per cent.

Where the Chinese yuan (a tier 2 currency) is used for serviceability, the LVR is now 50 per cent.

Furthermore, AMP is now only accepting 80 per cent of income derived from tier 1 currencies and 50 per cent of income derived from the Chinese yuan for lending purposes, while foreign self-employed income is “not acceptable”.

“Our standards are continually reviewed with market developments to ensure we remain a prudent and responsible lender,” an AMP spokesperson told Mortgage Business.

“Our criteria for overseas borrowers has recently been reviewed in line with this objective.”

AMP is the latest lender to alter its policy for foreign buyers, following changes by NAB, Westpac, ANZ, Commonwealth Bank, Bendigo and Adelaide Bank and Citi.

[Related: Foreign investor taxes a ‘gravely risky strategy’]

AMP Bank exits non-resident lending
mortgagebusiness

 

Latest News

The major bank has lowered its interest rate floor for mortgage serviceability assessments, becoming the third major bank to amend its polic...

A big four bank has announced the appointment of a new chief executive officer. ...

Digital neo-lender 86 400 has been granted a full authorised deposit-taking institution licence by APRA and expects to launch its mortgage ...

FROM THE WEB
podcast

LATEST PODCAST: A shift in serviceability requirements

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?

Website Notifications

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