businessOwned by: ASX Listed
monetization_onFunded by: Retail deposits and wholesale capital markets
securityLMI Provider: Genworth
account_balanceLender type: Bank
AMP is well known for having the largest financial advisor network in Australia, however few Australians think of AMP for bank accounts or home loans. Most of AMP’s home loan customers come through their financial planner network and mortgage broker partners.
Despite being a smaller bank, they are not afraid to go toe to toe with the major banks with sharp interest rates, innovative home loan products and smart lending policy niches.
How do AMP’s home loans compare?
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Coronavirus / COVID-19: AMP Bank home loan policy changes
For self-employed borrowers, AMP now requires additional documents to support an application:
- 2019 Financial Statements and Tax Returns.
- BAS (Business Activity Statement) to end of March 2020.
- Bank statements for the trading account/s from 1 March 2020 to the date of submission, confirming credit or deposits evidencing consistent trading income.
AMP also announced that they’re now accepting Disability Income payable by an approved insurer (non-Centrelink) covering the entire sum or a significant proportion of the original earnings. These could include government agencies such as the Department of Defence, the Police Force, etc and are subject to written verification of payment conditions including annual adjustments, expiry date (expected to be standard retirement age) and assurance that payment is not subject to routine medical check-ups.
Finally, they also require verification of information for external debts, loan repayment conduct and salary credit verification including, name, account number, balance, limit, interest rate etc.
Coronavirus / COVID-19: AMP Bank mortgage relief
AMP Bank home loan customers experiencing financial pressure due to the COVID-19 crisis, have the option to pause their home loan repayments for three months with an option to further extend it for another 3 months.
Customers who are ahead of their repayments may be able to reduce their current repayments, or use their redraw balance or offset to access additional funds.
To apply for a repayment holiday, you can call their hotline on 13 30 30 or apply online here.
What home loans types do they have?
AMP have a professional package, basic and essential home loan which all suit different loan sizes and borrower types. They also have their SuperEdge loan which is suitable if you are buying a property in your Self-Managed Super Fund.
Their Master Limit is a unique feature which allows you to have an approved line of credit with a maximum limit. You can then add and close accounts within this limit as you choose for up to ten years. This is a great feature for investors who buy and sell properties or shares regularly.
Tips for applying with AMP
The best way to apply for an AMP loan is through a mortgage broker. AMP has their own network of financial advisers, however they may be less likely to compare other lenders and so you can’t be sure that you’re getting the best deal.
By using a mortgage broker you can have confidence that AMP really is the right lender for you.
Use AMP Bank’s home loan application form to prepare for your home loan application.
Note: This is the latest application form as of June 2019. Please refer to AMP Bank for their most up-to-date document requirements.
AMP’s new postcode zoning model
AMP has updated its postcode zoning model used to view the risk profile of a postcode to determine its home loan lending criteria i.e. how much they want to lend, max loan to value ratio etc.
This new model has replaced the existing four-zone model to five zones and will use a combination of internal and external data sources such as arrears, the local property market, and industry reliance to provide a more complete picture.
The model grades postcodes into 5 five categories, which are:
- Low risk
- Ultra-low risk
- Medium risk
- High risk
- Ultra-high risk
AMP client story: Yasmine, Vic
- To refinance current Westpac owner-occupied home loan to AMP and consolidate debt.
When Yasmine first applied for a Westpac home loan, he took out a personal loan to cover his deposit to buy his home.
With his wife only working on a casual basis, he was soon struggling to keep on top of his mortgage as well as the personal loan, which was charging around 16% per annum in interest.
In order to cover these debts, Yasmine applied for an interest-free credit card and once that period was over he would simply apply for another to pay out the existing card.
Over time, he had multiple debts at different interest rates and he was again struggling to keep on top of his mortgage repayments. He wanted to consolidate his debt and reduce his interest rate fast.
Although he didn’t default, he had a number of enquiries recorded on his credit file which were preventing him from qualifying with a number of major banks and lenders.
Our mortgage broker was able to refinance Yasmine’s home loan ($394,592) with AMP because it is one of the few lenders that don’t credit score.
AMP was also able to come back with a favourable property valuation, refinance Yasmine at 90% LVR (Loan to Value Ratio) and consolidate 4 debt facilities including his initial personal loan for his deposit.
Getting a sharper interest rate was a bonus for Yasmine but more importantly, he’s now saving over $1,000 a month as a result of consolidating his debt.
Compare AMP to other lenders
Not sure which lender is right for you? Our Home Loan Experts can help!
Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.