The changes in Australian banking are coming thick and fast now.
NAB today announced it was increasing its interest rates on investor loans by 29 basis points. This follows similar moves by ANZ and CBA last week, and today’s announcement that Westpac is increasing its capital reserves with a $750 million notes issue.
Now there’s a rumour – unconfirmed as yet – that AMP is about to quit the investor lending market altogether and increase the interest rate on existing investor loans by 1%.
We’ve asked AMP for comment and will update if we hear back.
What we do know is that after months of talking about possible changes to banks’ lending rules, the hand of the banking regulator APRA is being seen all over the banking sector.
And while the major retail banks have been increasing the cost of loans by 20-30 basis points, AMP’s move is more dramatic. If true it would cause anyone with an AMP investor loan to consider refinancing.