A non-major bank has increased variable rates on its residential investment loans... Aussie property boom spurs real estate loans luring Asian banks...
AMP Bank raises investor interest rates
AMP Bank has announced an increase to variable interest rates on residential investment loans of 15 basis points, effective 6 January 2017 for new customers and 9 January 2017 for existing customers.
The AMP Professional Pack Home Loan variable interest rate for investor loans $250,000 and above will increase from 3.99 per cent to 4.14 per cent per annum.
There are no changes to variable interest rates for owner occupied loans.
AMP Bank managing director Sally Bruce said, “We remain focused on supporting our customers with competitive interest rates.
“Changes to our home loan rates take into account increasing wholesale funding costs and the need to maintain a balanced portfolio in line with regulatory guidelines,” she said.
Aussie property boom spurs real estate loans luring Asian banks
(Bloomberg) -- Australian real estate loans are bucking a slump in the syndicated lending market and have nearly quadrupled in 2016 from last year, buoyed by continuing demand for residential and commercial assets. Asian banks are taking notice.
Fifteen syndicated loan deals for constructions, land development and property acquisitions worth $3.37 billion were signed so far this year, the highest volume since at least 2013. At least six additional transactions totaling about A$2.4 billion ($1.8 billion) are in the pipeline.
Australian property prices have been spurred by monetary easing from the central bank, a growing population and increasing amounts of Chinese money entering the market in recent years. The gains in real estate syndicated lending come as local banks are reducing their commitments in what has traditionally been a domestic market as they brace for tougher capital requirements under new banking rules.
By contrast, year-to-date total loan volume in the country declined 22 percent to A$89.4 billion from 2015, and is poised to reach a six-year low. The decline is partly due to a 58-per-cent year-on-year decline in project financing, triggered by the rout in commodity prices earlier this year.
The strong demand for property assets in Australia shows no sign of abating, with $5.2 billion worth of acquisitions for property and real estate investment trusts in the works and deals totaling $4.5 billion having been proposed, according to Bloomberg data.
