AMP Bank has, as of this week, increased variable interest rates for owner-occupied interest-only loans by 28 basis points. The increase applies to Basic, Professional Pack, Classic, Affinity and Select variable rate loans and lines of credit. The increase does not apply to construction and land loans.
For example, the Basic package variable rate for new owner-occupier mortgages (interest only) now starts from 4.56 per cent (4.28 per cent comparison).
As well as variable rates, the bank has also hiked fixed rates for owner-occupied and investment interest-only loans by 20 basis points. The increase applies to fixed rate loans between 1 to 5 years as well as for 1-year fixed interest in advance loans.
Fixed rates for owner-occupied principal and interest loans have decreased by 10 basis points.
Existing customers will not be impacted by the changes.
The maximum loan-to-value ratio for interest-only loans will drop from 90 per cent to 80 per cent, effective for loan applications received from Wednesday, 31 May.
This change applies to all owner-occupied loans and loans that include owner-occupied and investment property securities. Master limit applications will also be limited to 80 per cent LVR.
The maximum LVR for purchases of investment property loans remains unchanged at 70 per cent.
