AMP ditches SMSF lending

AMP Bank has pulled the plug on its SMSF lending business, joining CBA and Westpac.

AMP will support current SMSF home loan customers. But starting November, they will not be able to switch to interest-only or refinance their loans.

This leaves Macquarie, Bendigo Bank and Bank of Queensland who continue to lend to SMSFs.

Westpac stopped SMSF lending on July 31, CBA has set October 12 as the date, AMP will also stop mid-October.

RateCity research director Sally Tindall said AMP's announcement comes as a shock to no one.

"AMP's new chairman, David Murray, has been one of the most vocal critics of self-managed super fund property lending," she said.

"Banks are focused on reducing risk in their loan books. In a falling property market, it's not surprising we're seeing lenders retreat from this type of lending," Tindall said.

The SMSF lending sector is shifting from traditional banks to non-bank lenders, with names like La Trobe Financial and Liberty Financial advertising rates at par with the bigger banks.

Read more: AMPSMSFCBAWestpacBank of QueenslandBendigo BankDavid MurrayLa Trobe FinancialLiberty FinancialMacquarieSally Tindall
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