AMP Limited (ASX: AMP) has joined the ‘Big 4’ banks in ending lending to SMSFs for residential and commercial property.
AMP is one of Australia’s largest wealth business and offers superannuation, insurance, lending, banking and other products.
AMP axes lending to SMSFs:
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Commonwealth Bank of Australia (ASX: CBA) recently ended lending to SMSFs for property. Westpac Banking Corp (ASX: WBC) also ended lending to SMSFs a couple of months ago. These moves are being attributed to scrutiny from the Royal Commission.
Now AMP has decided to step away.
SMSF lending has consistently been criticised by market commentators, including by AMP’s new Chairman David Murray. One of the main issues is that some SMSFs may only have one investment – a residential property that has a significant loan held against it.
“We only ever withdraw solutions for customers after careful consideration and in this case we believe it is prudent to stop selling our SuperEdge property loans to SMSFs for the foreseeable future“, said an AMP spokesman.
According to CoreLogic national house prices have fallen by 2% over the 12 months to 31 August 2018, analysts will be following what this latest announcement does to the market.
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