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?
- Assessing loans using common sense instead of credit scoring
- Investors who want an approved master limit with many sub-accounts
- Mature age borrowers
- Approving more home loans as they have a DUA with Genworth
- 100% of shift and car allowance accepted if received regularly
- 100% of overtime for essential service workers
- Parental leave home loan
- Mature age borrowers
- Can use Comprehensive Credit Reporting (CCR) data to validate account conduct and repayment history
- Working with mortgage brokers
- Company and trust loans
- SMSF loans
What home loans types do they have?
AMP offers a professional package, basic and essential home loan which all suit different loan sizes and borrower types.
- AMP’s Professional Package is targeted towards customers who are looking for a packaged home loan offering flexibility, long term interest rate discounts and additional benefits such as a line of credit.
- AMP’s Basic Home Loan is geared towards customers who want a simple, low cost loan. It combines fixed rate loans with variable rate loans – and can include a 100% mortgage offset against the variable split.
- AMP’s Essential Home Loan is geared towards customers who are looking for a simple, low cost loan. Great for customers that don’t need a loan with a long list of features but still want the essentials including the ability to make extra repayments and access to redraw.
- AMP’s SuperEdge loan is suitable if you are buying a property in your Self-Managed Super Fund (SMSF).
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.
Effective from 19 April 2021, AMP will not be accepting applications from expats. All new customers must be living, and if applicable working in Australia.
AMP uses a different 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, maximum loan to value ratio etc.
This new model uses 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: ultra-low risk, low risk, medium risk, high risk, and ultra-high risk.
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 November 2020. Please refer to AMP Bank’s website for their most up-to-date document requirements.
AMP client story
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.