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The changes come after AMP Bank re-entered residential SMSF lending in February through its SuperEdge product.
Among the changes, the lender has reduced its liquidity test from 10 per cent of total SMSF assets to 5 per cent of the total loan amount, lowered the minimum loan size from $300,000 to $200,000 and adjusted minimum SMSF net assets from $300,000 to $250,000 where other eligibility requirements are met.
AMP Bank has also reduced its minimum SMSF expense assumption, expanded acceptable security locations to selected Perth metropolitan Zone 3 postcodes and introduced pre-approvals for brokers.
AMP said the revised policy settings were informed by broker engagement, feedback and early lending experiences since launch.
It added that the updates are designed to improve practicality and consistency in the application process while maintaining existing credit safeguards.
“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,” Michael Christofides, AMP Bank director of lending and everyday banking, said.
AMP said it would continue broker support around the product through SMSF-specific training, policy walkthroughs and case study guidance aimed at helping brokers identify suitable scenarios earlier in the process.
The lender re-entered residential SMSF lending in February as part of a broader move to expand broker-delivered choice for SMSF borrowers.
A shifting market
AMP’s latest policy refinements come as competition in the SMSF lending space continues to evolve, particularly among non-bank and specialist lenders seeking to fill the gap left by the major banks.
The major banks have remained largely absent from SMSF property lending for the better part of a decade, with Commonwealth Bank and Westpac exiting the market in 2018, National Australia Bank in 2015 and Macquarie Bank in 2019. Australia and New Zealand Banking Group (ANZ) did not make significant moves into the space to begin with.
In the years since, a growing number of specialist and non-bank lenders, including Pepper Money, Firstmac, Better Choice and Liberty, have all expanded their presence in the sector.
The withdrawal of traditional lenders followed broader regulatory scrutiny around the use of retirement savings for leveraged property investment, particularly in the wake of the 2014 Financial System Inquiry and the banking royal commission.
Against that backdrop, lenders returning to or expanding in SMSF lending have generally done so with tighter policy frameworks and more targeted broker education.
Christofides added: “These refinements will make the lending process clearer and more predictable, and allow us to maintain high service standards alongside strong credit discipline.”
[Related: Unpacking the rising popularity of SMSF investment]
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