AMP Bank pulls out of all investment lending

Discussion in 'Loans & Mortgage Brokers' started by Richard Taylor, 27th Jul, 2015.

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  1. MRO

    MRO Well-Known Member

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    Maybe if LMI was a transferable between banks this would be less of an issue.

    Minimal transfer costs would make the market more open.
     
    MRO, 27th Jul, 2015
    #21
  2. jaybean

    jaybean Well-Known Member

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    Redom has addressed this a few times before (i.e. following the Auckland model). Can't remember specifically what he said but it seemed to make sense.
     
    jaybean, 27th Jul, 2015
    #22
  3. S.T

    S.T Well-Known Member

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    Oh boy if this happened to me I'd go nuts! Would definitely be speaking to some kind of banking ombudsman.
     
    S.T, 27th Jul, 2015
    #23
  4. Redom

    Redom Mortgage Broker Business Plus Member

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    @sanj

    Geographic based lending policy was considered by policymakers, at least it was over a year ago when i was there.

    At Treasury's financial markets team, we used to get into relatively heated discussions (like typical policymakers) on the merits of geographic based policy and its application around the world - it has been used across Asia.

    Aussie policymakers, as much as many on this forum would disagree with, don't have an appetite for overstepping and would much rather let the market do its thing.

    Thats why i keep talking about 'incentive' driven approach to rebalancing. Adjusting the market pricing and letting the market self adjust, is the cleanest form of transition and doesn't involve significant spillover costs.

    Geographic policymaking is very 1970s and doesn't bode well with soft principles guiding capital markets policy.

    But there comes a point where policymakers start weighing up the cost of a serious issue in the market over potential theoretical policymaking issues.

    We may be nearing that point.
     
    Redom, 27th Jul, 2015
    #24
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  5. sanj

    sanj Well-Known Member Premium Member

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    Thanks for the insight.to me it certainly seems an obvious option but I'm sure there's lots I haven't considered.
     
    sanj, 27th Jul, 2015
    #25
  6. devank

    devank Well-Known Member

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    Geographic policymaking = Can of worms
     
    devank, 27th Jul, 2015
    #26
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  7. DanW

    DanW Well-Known Member

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    This will cost me about $5,500 before tax.

    Small price to pay for the deal it secured though.

    However I'll still be looking to do something about it before long, no reason to stay.

    I wonder if there is still time to take one of their current fixed rates before the new rates take effect?
     
    DanW, 27th Jul, 2015
    #27
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    no real basis for a complaint though. Just a rate increase.
     
    Terry_w, 27th Jul, 2015
    #28
  9. montoya

    montoya Well-Known Member

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    Oh crap... Just when we were looking good to buy property number 4...
    Emailed our broker today to see whether fixing at a lower rate is possible and how this is going to affect our next lend...
     
    montoya, 27th Jul, 2015
    #29
  10. Perthguy

    Perthguy Well-Known Member

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    Perthguy, 27th Jul, 2015
    #30
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  11. Azazel

    Azazel Well-Known Member

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    Gosh darn the blessed thing...
    We're in the midst of a new lend with AMP...
    Hmm. Hmm.
     
    Azazel, 27th Jul, 2015
    #31
  12. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    As far as I'm aware, AMP hasn't actually made their formal announcement yet. It was due at 5pm but hasn't been distributed as of 6:30pm. Odds are we'll see it tomorrow sometime.

    According to my sources, they're not increasing existing loans by 1%, this is only being applied to loans which are not fully approved (@Azazel this doesn't bode well for you). They're also reducing rates for owner occupied and making a major push in that sector.

    They do anticipate a rate increase for existing loans, but it's expected to be more in line with what the other lenders have done, not a 1% increase.

    The reason the AMP is being so extreme is all of the banks want to get their investment lending under control within their financial year reporting period. For most lenders, this gives them until June next year. For AMP they've got until the end of December and only 5 months to get there, so they have to take extreme measures.

    It's also anticipated that they'll return to the investment market in fairly short order, they're only temporarily putting the breaks on.
     
    Peter_Tersteeg, 27th Jul, 2015
    #32
    sumterrence, Terry_w, Perthguy and 1 other person like this.
  13. jaybean

    jaybean Well-Known Member

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    Why do they have a different date?
     
    jaybean, 27th Jul, 2015
    #33
  14. Mick C

    Mick C Well-Known Member

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    Im with Pete.....i doubt existing loan will increase by 1%...morel like NEW IP loan yes maybe...
     
    Mick C, 27th Jul, 2015
    #34
  15. Corey Batt

    Corey Batt Well-Known Member

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    My BDM has come up with the same, saying it will just be ratcheted up as much as the market with take (so they'd follow the other banks at a minimum then reassess).
     
    Corey Batt, 27th Jul, 2015
    #35
  16. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I'm speculating, but it could be something to do with the US financial year.
     
    Peter_Tersteeg, 27th Jul, 2015
    #36
  17. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    wont be 1 % on back book................

    yet

    mainly
    to discourage pre approvals from settling

    ta

    rolf
     
    Rolf Latham, 27th Jul, 2015
    #37
  18. beachgurl

    beachgurl Well-Known Member

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    I'm waiting for loan docs to be received. Do I fall within the 1pc loading or do I just scrape through as I have unconditional approval?
     
    beachgurl, 27th Jul, 2015
    #38
  19. jaybean

    jaybean Well-Known Member

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    I hope you scrape in...

    Where do you live? You might be able to shave a day off by delivering it in person, that's what I did. I just walked up to their office and handed it in.
     
    jaybean, 27th Jul, 2015
    #39
  20. Mick C

    Mick C Well-Known Member

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    "IF" it applies to new and existing loans...than yes you will be effected...But my gut feeling your not effected by the 1%...If anything 1% will be for new loans and XX% for existing etc...

    Nothing confirmed from AMP yet...all speculation at this point
     
    Mick C, 27th Jul, 2015
    #40
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