AMP Bank is quietly expanding its business even when the overall housing finance market in Australia is facing pressure here and abroad.
During the second quarter of 2025 the Sydney-based bank increased its home lending by 2.8%, pushing its total home loan book to $23.3 billion. While the figure is less dramatic than the larger spikes the bank enjoyed in previous years, it signals a shift toward steady, cautious growth. AMP Bank is choosing to pad its results slowly rather than chase big numbers, mindful of tough market competition and economic headwinds.
Housing Market Activity Rises, Competition Intensifies
Australia’s housing and loan markets have gained traction this year, spurred by two interest rate cuts from the Reserve Bank of Australia. The lower costs have welcomed more buyers and investors, and the market has more cuts in the near term.
However, the in activity has also sparked fierce competition among banks and non-bank lenders, who are trimming both fixed and variable rates to win borrowers. The pressure on margins has driven AMP to sharpen its focus on quality lending, putting the brakes on fast volume growth in favour of a stronger loan portfolio.
Broader Economic Uncertainty Weighs on Sentiment
AMP’s latest results arrive amid rising global and political jitters that now hang like cloud cover over the local market. Trade volleys, conflict in the Middle East, and worries about slower global growth are pushing central banks, the RBA included, to hold the line on future interest-rate plans.
Homeowners and investors are already feeling the chill. Many are pressing pause on new property buys and refinancing deals, waiting for clearer skies. AMP’s deliberate, measured growth hints that loan volumes will stay even and steady, not the sharp climb that sometimes follows a rate pause.
Investment and Digital Expansion
The bank’s performance outside mortgage lending tells a brighter story. Net cash flows into its investment platforms soared by 63.2% year-on-year, while assets under management crested 5.6% over the last quarter.
AMP is also pushing ahead with new features to broaden its reach. The digital hub AMP Bank GO has rolled out little-business overdraft products and is gearing up to offer new savings accounts. These moves create more financial wiggle room and draw in a wider customer crowd, all while AMP builds out a more complete financial-services play.
Stable Loan Quality, Small Dip in Deposits
AMP continues to show strong loan quality, with arrears over 90 days steady at 0.88%. This shows discipline in choosing borrowers and managing risk. Total deposits, however, slipped to $20.5 billion from $20.7 billion the prior quarter, a sign that competition for funding remains fierce.
Implications for the Property and Lending Market
AMP’s results indicate that the Australian housing market is settling into a steadier phase. Demand is still solid, yet lenders will keep tight criteria, especially for first-home buyers and investors. As a result, property prices in several areas are likely to rise at a slower, steadier rate.
OM Financials partners with first-time buyers and seasoned investors alike, guiding them through the intricacies of a lending environment where each case can present unique obstacles.With lenders like AMP adopting careful growth and strong lending rules, landing the right home loan requires good prep.Call us today at 0478 876 967 schedule a consultation and take a step closer to your property goals.