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AMP Returns to Investor Lending

Discussion in 'Property Finance' started by House, 16th Nov, 2015.

  1. House

    House Well-Known Member Premium Member

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    After a nearly five-month hiatus from the market, a non-major lender has announced it will return to investor lending this month.

    From today, AMP will again accept applications for loans for investment properties after it announced a temporary withdrawal from the sector on 29 July.

    The withdrawal was in response to the Australian Prudential Regulation Authority’s (APRA) push to slow down investor lending and was one that came as a surprise to many at the time.

    In a statement, the bank siad it had always targetted being back in the market during 2015.

    “The return to investor property lending is in line with AMP Bank's commitment to return to the market in 2015,” the statement said.

    “Investor property lending to SMSFs remains on hold in order to meet AMP Bank’s regulatory commitment for the SMSF portfolio. The bank is expected to return to SMSF lending later this year.”

    While AMP said it was committed to returning to the market in 2015, Philippe Brach, chief executive officer of Multifocus Properties & Finance said he had predicted the bank wouldn’t return to dealing with investors until early 2016, and he is sceptical of the initial reaction the lender will get.

    “Bank of Queensland did a similar thing a few years ago where they said they didn’t want to deal with the broker channel. After a while they came back and said they wanted in the broker channel again and a lot of people said why should we jump just because you say jump?” Brach said.

    “Initially I think that’s the reaction AMP will get from investors. When you chop and change it can leave a bitter taste in people’s mouths. After a while if the offers are good enough though, people will go back to them,” he said.

    AMP announces return to investor lending
     
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  2. euro73

    euro73 Well-Known Member Business Member

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    Their servicing policies are now mid strength like everyone's...but they have a number of good policies ;

    90% + LMI for INV security
    Unlimited cash out to 85% against any security
    Master Limit
    Free up front vals
     
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  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    A mere shadow of their former self..............

    Couple of other plusses

    no score - files are manually assessed
    Master Limit allows for debt recyclingin a near "seamless" fashion ( though not as good as Macq, where you can just overdraw a facility as long as he overall doesnt bounce over)
    They dont apply joint and several liability assessment for here you have loan which arent co borrowers here


    ta
    rolf
     
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  4. euro73

    euro73 Well-Known Member Business Member

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    Id still take them any day over CBA - who have proven themselves to be disgraceful in business yet again. This only serves to reinforce why I refuse to do any business with CBA and long ago, relinquished my accreditation

    Commonwealth Bank threw its customers under the bus
     
  5. Redwood

    Redwood Well-Known Member

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    Will be interesting how they tailor their SMSF product later in the year - if they will be offering 80% LVR and if they will accept or limit LVR for off the plan and further whether they will require an SOA for SMSF loans....

    They were always coming back to the market - it was just a matter of how long.

    Cheers Ivan
     
  6. Azazel

    Azazel Well-Known Member

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    Oh god bless the delightful decision makers at AMP.
     
  7. DanW

    DanW Well-Known Member

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    Allow a month for that no score, manually assessed though.. At least in my experience it was more than that
     
  8. Richard Taylor

    Richard Taylor Mortgage Broker & Brisbane Buyers Agent

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    Certainly not offering anything like they used to but still have a place in the portfolio for the right client.

    Adopting a new sliding scale living allowance I see which will further reduce the amount you can borrow depending on your overall income.

    Cheers


    Richard
     
  9. JohnPropChat

    JohnPropChat Well-Known Member

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