flagFounded: 1849

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?

They’re great at

But they’ve got some drawbacks…


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.


AMP client story: Yasmine, Vic

Goal

  • To refinance current Westpac owner-occupied home loan to AMP and consolidate debt.

Situation

Refinance, debt consolidation, low credit score, credit enquiries, personal loan as a deposit, no deposit.

Background

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.

Solution

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.

  • Thow

    Hi, I’ll be going for an SMSF loan with AMP soon. How much deposit would be sufficient?

  • Hey Thow,

    To buy a residential property for your SMSF, you generally need 20-25% of the property value as a deposit, plus an extra 5% of the property value to cover the costs of completing the purchase such as stamp duty and other legal expenses. For commercial properties, you need at least a 30% deposit for an SMSF loan plus 5% for the costs of completion.

  • Mayer

    I have already dealt with AMP and I do like their service but it seems they are not good with construction. I’m just researching and not sure if I will build or just buy so for now, can you give me some tips for if I do go construction?

  • Hi Mayer,
    Building a home is a complex process that involves a lot of people in its process and so construction loans are often set-up with many errors. We have created a guide to help you ensure that you don’t have these same frustrations with your construction mortgage and you can find it on our construction loan tips page:
    https://www.homeloanexperts.com.au/home-loan-articles/construction-loan-tips/

  • Jezebel

    How do the banks usually calculate the borrowing power for an SMSF loan?

  • Hey there,
    Typically, the banks will look at the current income of the trust based on its previous two years tax returns and will then assess if that income plus the proposed rental income will be sufficient to service the debt. Some lenders can also use the income of members or beneficiaries of the SMSF to support the application if a personal guarantee is provided. You can use our SMSF borrowing power calculator to see how some of our banks would assess your situation:
    https://www.homeloanexperts.com.au/mortgage-calculators/smsf-borrowing-power/

  • clark

    I would like to buy a piece of land and then build on it. The building will be used as an investment property but we may move in too so not entirely sure right now. We’re thinking of buying in Martins Creek NSW but we’re also checking out way down in Greenvale VIC. How would AMP be for this?

  • Hello clark,
    AMP are not that great at dealing with construction loan applications so it may be a better option to check out other lenders that are before you make a decision. Additionally, you’ll need to properly consider what you’re going for – is it a land plus construction loan? Is it a residential development loan? Will you be building immediately or is it just a land loan for now? Etc. Our mortgage brokers specialise in construction projects and know which lenders are more flexible for developments and investments such as this. Please feel free to call 1300 889 743 to discuss your options and find out which may be best.

  • Nathalie

    I would like to get my investment loan refinanced to AMP. They seem to have the rates and the features that I’m looking for, which my current bank doesn’t have. I have 25% equity in the investment property so it should be all good, right?

  • Hi Nathalie
    Actually, AMP aren’t accepting any investment loan refinances at the moment although they are still accepting home loan refinances. This seems to be a part of their plan to remain within APRA’s 10% cap on investment loan growth and we’re not sure when they will start accepting investment property refinances again.