AMP has changed its SMSF limited recourse borrowing arrangement (LRBA) lending policies, reducing the minimum loan size and net asset thresholds that applied when it re-entered the residential LRBA lending space earlier this year.
AMP Bank lending and everyday banking director Michael Christofides said the changes follow feedback from brokers and early lending experiences since the launch of its SuperEdge product in February.
Specifically, the liquidity test has been reduced from 10 per cent of total SMSF assets to 5 per cent of the full loan amount, which AMP Bank stated still provides a “sensible cash buffer”, but reduces tying up unnecessary capital.
The minimum loan size has also been reduced from $300,000 to $200,000 and minimum SMSF net assets have been adjusted downwards from $300,000 to $250,000, where other eligibility and safeguards are met.
Additional changes include SMSF expenses now being based on typical fund costs, which reflects how SMSFs actually operate, and brokers can now access pre‑approvals for clients before they commence searching for a property.
Christofides said the change in policy settings improves practicality and consistency of loans, while maintaining prudent credit assessment and appropriate safeguards for SMSF trustees.
“Following our return to SMSF lending, we’ve been working closely with brokers to understand their experience with clients, while ensuring fast and consistent turnaround times,” he added.
“These refinements will make the lending process clearer and more predictable, and allow us to maintain high service standards alongside strong credit discipline.”
AMP Bank will continue to offer brokers SMSF‑specific training, including real‑deal case studies and clear policy walk‑throughs to help identify fit earlier and minimise rework on the SuperEdge products, which are only available to SMSFs with a corporate trustee structure, with a minimum loan-to-value ratio of 80 per cent to be applied.
Jason Spits
SENIOR JOURNALIST
Jason is a senior journalist with Benchmark Media and writes for the selfmanagedsuper website and magazine and smstrusteenews website. He has covered financial services since 1999 and has written about life insurance, superannuation, investment management and financial advice, in both a freelance and in-house capacity, and also did a brief stint as a media manager for an industry association. He has been the editor of trade titles Money Management and Financial Standard, and was most recently senior journalist with life insurance title Riskinfo.
Articles by Jason