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AMP Home Loan Review

AMP is one of Australia’s largest financial service companies and is known for having one of the largest financial advisor network.

However, surprisingly there are only a few Aussies who actually apply for a home loan with AMP. Most of its customers come directly through its mortgage broker partners and financial planner network.

Even though AMP is a small bank, it offers competitive interest rates, smart lending policies, and innovative home loans, which makes it as popular as other major banks for certain consumers.

The question is, will AMP Home loans be right for you?

Let’s take a look at some of the benefits of choosing AMP and what they can offer.

Note this review, interest rates and product information are correct as at 14 August 2019 and all of this information is subject to change without any further notification. Any applications for credit are subject to meeting the specific bank’s criteria and the decision is at their final discretion.

AMP Bank Home Loan Review

 

What are AMP Home Loans like?

The top 5 things AMP are good at:

  • Approved Master Limit: It is a great option for investors who have many sub accounts and wish to have an approved master limit. For example, if you are approved for a loan up to $500,000 you can switch sub accounts to be $250k/$250k or $100k/$400k with just a simple phone call. 
  • Refinancing: If you are looking for a refinancing option, AMP home loan will be a great option for you especially if you are an investor as they do not increase interest rates up to 90% LVR. In other words, the same interest rates apply at 90% as they do at 80% with AMP. 
  • Less Focus on Credit Scoring: When assessing a loan application, AMP takes a lot of factors into consideration instead of focusing only on giving you a credit score. Put another way, they use common sense while assessing an application and keep all the factors in mind. Note, this is referring to the bank’s own way of assessing your credit, not relating to if you have bad credit.
  • Working with a Mortgage Broker: AMP is working with a large number of mortgage brokers. Therefore, if you are applying for a home loan via a mortgage broker, it is pretty likely that it would be accredited with AMP, which would improve your chances of getting an approval.
  • Repayment Holidays: As a fairly unique feature, AMP offer their mortgage safety net as a part of their home loan products. This allows you to suspend repayments for up to six months and capitalise interest to the loan for that period. Mostly designed for anyone facing an involuntary redundancy, or for example was recently offered to Flood Victims in Townsville it can help with managing your cashflow. 

 

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What are the downsides?

  • Bad credit: If you have a bad credit history, it is less likely that you will qualify for a home loan, because AMP doesn’t usually approve a loan application for those with bad credit history. Therefore, if you are one of those people, try to improve your record if you want to secure a home loan.
  • Over 90 percent Borrowing: If you need to borrow over 90 percent of the property price, you might not be able to get loan approval from AMP, which makes it not the right choice for those without a big deposit.
  • Fairly strict property policies: Being a smaller bank they don’t quite have the risk appetite as some of the larger players, so if you have a unique property or something on larger land you might have troubles getting your loan approved with AMP. 
  • No branches: Similar to ING and other smaller banks, AMP does not have any branches across Australia. So while they have fairly good internet banking, if you need to bank a cheque you will need to do so via Australia Post. 
  • Not for self-employed Individuals: Are you a self-employed individual and looking for a home loan? If so, AMP may not be the right option for you, because it won’t offer loans to self-employed individuals if you don’t have sufficient proof of income.

 

What Different Home Loan Types Does it Offer?

AMP offers a wide range of home loan packages that are suitable for different types of borrowers with different loan requirements. They have a professional package, a basic home loan package, and an essential home loan.

In addition to that, they also have a package called SuperEdge cash account, which is suitable for borrowers who want to purchase a house with their self-managed superannuation fund.

What sets it apart from other financial institutions is its Master Limit feature on a home loan, which allows you to get an approved line of credit with a maximum limit. As a borrower, it gives you a choice to add or close accounts within that specified limit for up to 10 years. It is an outstanding feature for investors who sell or purchase properties on a regular basis.

 

1. Professional Package Home Loan

This home loan package is available for both professionals and those who just want more features. You can choose if you’d like fixed or variable and the loan can be split between accounts.

  • ✅ Variable, fixed rate or line or credit available
  • ✅ Other banks can be linked to your loan
  • ✅ Not just for professionals
  • ✅ 100% offset account with variable rate loan
  • ✅ Loan size from $100,000 to $2,000,000
  • ⛔ Line of credit: $349 annual Package fee
  • ⛔ Variable rate(i) loan: $349 annual Package fee

 

2. AMP Essential Home Loan

This the basic home loan offering that is a simple, no-frills option.

  • ✅ Competitive variable rates
  • ✅ Additional repayments at any time
  • ✅ Redraw facility
  • ✅ No establishment fees
  • ✅ Loan size from $40,000 to $2,000,000
  • ⛔ No fixed rate option or line of credit available
  • ⛔ No offset account available 

 

3. Basic package

As the name suggests, this one is the most basic options of them all but gives the applicant a choice between fixed or variable rate.

  • ✅ Optional Offset deposit account with basic variable rate loan
  • ✅ Redraw facility
  • ✅ No establishment fees on home loans up to 90% LVR
  • ✅ True flexibility with up to 10 account splits at fixed or variable rates
  • ✅ Fixed or variable rate options
  • ✅ Loan size from $40,000 to $2,000,000
  • ⛔ No line of credit available
  • ⛔ $250 settlement fee

 

4. SuperEdge Cash Account

The AMP SuperEdge Cash Account is a great way to manage your SMSF’s cash flow with a competitive interest rate and access to your money. You’ll gain flexibility towards how you deposit and withdraw your money and acts as an everyday account that earns interest.

  • ✅ Daily interest calculated
  • ✅ 24 hour access
  • ✅ No account fees
  • ⛔ Only SMSF trustees or SMSF pensioners are eligible to open one

 

What are AMP’s Interest Rates?

AMP offers a variety of loan products and interest rates to suit, but as explained above, it does come with some fine print.

Owner Occupier Loans
Investment Home Loans
LOAN PRODUCTINTEREST RATE P.A.COMPARISON RATE P.A.*BANK
AMP - Affinity Package Fixed Rate Loan 2 yr - 2 Year Fixed Rate2.89%3.94%
AMP - Professional Package Fixed Rate Loan 2 yr - 2 Year Fixed Rate2.89%4.24%
AMP - Affinity Package Fixed Rate Loan 3 yr - 3 Year Fixed Rate3.13%3.9%
AMP - Professional Package Fixed Rate Loan 3 yr - 3 Year Fixed Rate3.13%4.18%
AMP - Affinity Package Variable Rate Loan - Variable Rate3.14%3.17%
AMP - Professional Package Variable Rate Loan - Variable Rate3.14%3.53%
AMP - Affinity Package Fixed Rate Loan 5 yr - 5 Year Fixed Rate3.34%3.84%
AMP - Professional Package Fixed Rate Loan 5 yr - 5 Year Fixed Rate3.34%4.08%
AMP - AMP Essential Home Loan - Variable Rate3.59%3.6%
AMP - Basic Package Variable Rate Loan - Variable Rate3.68%3.71%
AMP - Basic Package Fixed Rate Loan 5 yr - 5 Year Fixed Rate4.06%3.88%
AMP - Introductory Classic variable rate loan - Variable Rate4.13%4.17%
AMP - Basic Package Fixed Rate Loan 1 yr - 1 Year Fixed Rate4.25%3.77%
AMP - Affinity Package Fixed Rate Loan 1 yr - 1 Year Fixed Rate4.25%4.17%
AMP - Professional Package Fixed Rate Loan 1 yr - 1 Year Fixed Rate4.25%4.49%
AMP - Basic Package Fixed Rate Loan 2 yr - 2 Year Fixed Rate4.33%3.83%
AMP - Basic Package Fixed Rate Loan 3 yr - 3 Year Fixed Rate4.49%3.93%
AMP - Classic Club Fixed Rate Loan 3 yr - 3 Year Fixed Rate4.6%5.03%
AMP - Classic Club Fixed Rate Loan 2 yr - 2 Year Fixed Rate4.6%5.07%
AMP - Classic Club Fixed Rate Loan 1 yr - 1 Year Fixed Rate4.6%5.12%
AMP - Classic Club Fixed Rate Loan 5 yr - 5 Year Fixed Rate5.04%5.13%
AMP - Classic Club Variable Rate Loan - Variable Rate5.13%5.17%
AMP - Land Loan - Variable Rate5.13%5.19%
LOAN PRODUCTINTEREST RATE P.A.COMPARISON RATE P.A.*BANK
AMP - Affinity Package Fixed Rate Loan 3 yr - 3 Year Fixed Rate3.42%4.47%
AMP - Affinity Package Fixed Rate Loan 2 yr - 2 Year Fixed Rate3.42%4.58%
AMP - Professional Package Fixed Rate Loan 3 yr - 3 Year Fixed Rate3.42%4.74%
AMP - Professional Package Fixed Rate Loan 2 yr - 2 Year Fixed Rate3.42%4.87%
AMP - Affinity Package Fixed Rate Loan 5 yr - 5 Year Fixed Rate3.58%4.33%
AMP - Professional Package Fixed Rate Loan 5 yr - 5 Year Fixed Rate3.58%4.56%
AMP - Affinity Package Variable Rate Loan - Variable Rate3.86%3.9%
AMP - Professional Package Variable Rate Loan - Variable Rate3.86%4.24%
AMP - Basic Package Variable Rate Loan - Variable Rate3.93%3.97%
AMP - Basic Package Fixed Rate Loan 3 yr - 3 Year Fixed Rate3.99%3.98%
AMP - Basic Package Fixed Rate Loan 2 yr - 2 Year Fixed Rate4.57%4.08%
AMP - Basic Package Fixed Rate Loan 1 yr - 1 Year Fixed Rate4.64%4.04%
AMP - Affinity Package Fixed Rate Loan 1 yr - 1 Year Fixed Rate4.64%4.81%
AMP - Professional Package Fixed Rate Loan 1 yr - 1 Year Fixed Rate4.64%5.12%
AMP - AMP Essential Home Loan - Variable Rate4.84%4.86%
AMP - Classic Club Fixed Rate Loan 3 yr - 3 Year Fixed Rate5.17%5.94%
AMP - Classic Club Fixed Rate Loan 2 yr - 2 Year Fixed Rate5.17%6.03%
AMP - Classic Club Fixed Rate Loan 1 yr - 1 Year Fixed Rate5.17%6.13%
AMP - Basic Package Fixed Rate Loan 5 yr - 5 Year Fixed Rate5.18%4.49%
AMP - Introductory Classic variable rate loan - Variable Rate5.19%5.24%
AMP - Classic Club Fixed Rate Loan 5 yr - 5 Year Fixed Rate5.61%5.98%
AMP - Classic Club Variable Rate Loan - Variable Rate6.19%6.23%
AMP - Land Loan - Variable Rate6.19%6.26%
Interest Rates Last Updated 14/10/2019 18:02:06

*Interest Rate Warning: The comparison rate advertised is a real example based on a loan of $150,000 over a loan term of 25 years and does not take into consideration all fees and charges. Using a different interest rate, term, fee or increased loan amount will result in a completely different comparison rate

 

Depending on the loan package the interest rates can be competitive.

 

What documents does AMP need for a home loan?

AMP’s application is fairly standard compared to most banks and assuming you are a salaried employee and you are purchasing your first home they would ask for:

  • ☑️ Signed Application Form, Privacy Act form completed by all borrowers
  • ☑️ Identification documents: Current Medicare + Drivers license, or Australian passport
  • ☑️ 2 most recent consecutive payslips inclusive of YTD; (minimum of 3 months year to date (YTD) income & tax figures) and tax return or PAYG summary (other options stated on document too).
  • ☑️ ️3 Months statements showing all continuing liabilities – i.e. any open credit card, personal loan, store card or overdraft statements
  • Savings pattern (Applicable when LVR > 90%) – Established over 3 month period with regular deposits or from shares, real estate or other
  • ☑️ 2 Most Recent Computer Generated Payslips
  • ☑️ Evidence of your Genuine Savings, being statements to show the funds have been held for more than 3 months
  • ☑️ Signed Contract of Sale
  • ☑️ All Personal Loan and Credit Card refinancing and/or debt consolidation – 1 months statements (<30 days old

 

Self-employed (sole trader/ partnership/company/ trust income) 

  • ☑️ Minimum self-employed period 2 years – All applicants (including directors and trustees) must provide personal/company tax returns for the previous 2 years and a minimum of one financial year’s
  • ☑️ Tax Assessment Notice for each income source – Balance Sheets and Profit and Loss Statements must be provided for the previous 2 years
  • ☑️ Income projections and cash flow forecasts or income from a business being purchased are not acceptable for serviceability assessment
  • ☑️ Income from the latest financial year has increased by less than or equal to 20% of the previous year, then the latest year’s income is used
  • ☑️ Income from the latest financial year is more than 20% of the previous year, then a maximum of 120% of the previous year’s income is used
  • ☑️ Income from the latest financial year is less than the previous year, the lower of the 2 figures is used

 

What else does AMP Offer?

AMP offers home loans along with banking, super and insurance so you can consolidate all of these things into one place.

#What_are_AMP_Home_Loans_like

 

What are some of AMP’s Customer Reviews?

AMP’s customer satisfaction is pretty standard and slightly below at 71% compared to the major banks whose customer rate them 64%. Customers were satisfied with all of its services with nothing really stand out.

 

How does AMP compare to other lenders?

Since a large number of brokers are accredited with AMP, the best way to apply for its home loan is via a mortgage broker.

It is important to know that AMP has its own network of financial advisers who are less likely to compare the products with other lenders. This puts a limit on your search for a suitable package because you are never sure if you are securing the best deal.

 

How does AMP compare to other lenders?

Speak to our team to find the best deals thorough comparison based on different parameters and by keeping your financial goals in mind.

Compare your loan packages offered by various lenders as it will allow you to choose the best option, keeping in mind your savings and budget.

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