AMP Loan Guide

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The Australian Mutual Provident Society (AMP) is one of Australia’s leading financial organisations, currently offering banking services, financial advice, life insurance, investment management and many more services to over 3.8 million Australian and New Zealand customers.

The Australian Mutual Provident Society (AMP) is one of Australia’s leading financial organisations, currently offering banking services, financial advice, life insurance, investment management and many more services to over 3.8 million Australian and New Zealand customers.

Since establishing its roots in Australia in 1849, AMP has expanded on a global scale. Now operating across 11 countries, AMP has customers in Asia, North America, the UK, Europe, and the Middle East.

AMP first opened its doors nearly 170 years ago in 1849. Beginning as a life insurance management company, AMP has since transitioned into an all-encompassing financial services company within 100 years.

Now, AMP offers banking services and financial advice to customers in Australia and New Zealand, and further around the world.

AMP offers a variety of loan packages to their customers who want to buy, refinance, and build a home:

  • Professional Package Home Loan
  • AMP Essential Home Loan
  • Basic Package
  • Classic Club

AMP also provides land and construction loans to those looking to build a house or other building on a plot of land.

AMP offers a selection of features to their borrowers – depending on which type of loan you need. The following are some of the more notable features you can expect to receive through a loan from AMP:

Offset Accounts

AMP offers 100% offset accounts for most of their variable-rate loan packages. You can use your Offset Deposit Account or Bett3r Offset Account to reduce your loan term and interest repayments on a long-term basis.

This feature is unavailable with fixed-rate loans and has some limitations with variable-rate packages. Fees also apply depending on your loan type.

Be sure to navigate to the “Loan Type” section below for more information about which loan options allow 100% offset accounts.

Flexibility

AMP provides their customers with flexibility in both payment schedules and loan splits. With a maximum split of $10,000, you can split your loan up to 10 times.

The flexible repayment schedule allows you to make payments when they work for you.

You can choose to pay your bill via monthly, fortnightly, or weekly installments through most of AMP’s loan selections.


 
AMP offers multiple loan types, each involving different feature-related benefits and disadvantages.

Take a look at our breakdown below for more information on the most popular types of home loans available through AMP:

Professional Package Home Loan

The Professional Package isn’t restricted to property investors – owner-occupied loans over $750,000 are available through this package as well.

You can choose between fixed or variable-rate loans through the Professional Package, and split your loan between up to 10 sub-accounts.

AMP also allows you to choose principal and interest or interest only repayments.

You can make additional repayments of variable-rate loans, but AMP caps at $10,000 a year during the fixed-rate period. 100% offset accounts are only available with the variable-rate option.

AMP Essential Home Loan

The AMP Essential Home Loan is your standard variable-rate loan. You won’t have to pay any ongoing fees, establishment fee, or settlement fee, as AMP waives them with this option.

The variable-rate loan provides access to unlimited additional repayments and fee-free redraw facilities.

Neither interest-only repayments or the 100% offset account feature are available with this package. You will have access to AMP’s flexible repayment schedule and split loan facility, though.

Basic Package

The Basic Package gives borrowers a choice between a fixed and variable-rate loan. A $250 settlement fee applies with this option, but you won’t have to pay an establishment fee or any ongoing fees.

The basic package enables you to decide whether you want to pay principal and interest or interest-only loan types. Principal and interest repayments allow you to choose a flexible repayment schedule, but interest-only repayments require monthly instalments.

The Basic Package is the only loan option that doesn’t include a fixed-rate stipulation on additional repayments and redraw facilities (we suggest consulting a loan officer to make sure this isn’t an oversight on their online listing).

Limitations with your payment methods will be involved here – AMP only allows you to pay your Basic Package loan through internet and phone banking methods (excluding BPAY).

Classic Club

The Classic Club is a customisable version of the variable or fixed-rate loan AMP offers. This loan involves more fees than others – in addition to the standard $250 settlement fee, you’ll be required to pay a $350 establishment fee and a monthly ongoing fee of $10.

The benefit of this loan is the ability to customise it with features most relevant and beneficial to you.

AMP’s remaining Classic Club loan terms are similar to those listed above. AMP handles additional repayments, redraw facilities, and offset accounts the same way they do for the rest of their packages. They are available with variable-rate loans and limited for a fixed-rate period.

There are a few different ways to begin the AMP loan application process – you can download their application form, call them for more information or assistance, or request that they contact you.

The AMP application form is comprehensive and detailed. Following the form’s submission, a loan officer will review it and contact you to provide information about the next steps.

Redraw facilities are available for all AMP variable-rate loans, however, the withdrawal of additional funds during the fixed rate period is not permitted.

AMP’s website provides further details about their loan options. All fixed-rate option packages inform borrowers that they won’t be able to redraw additional funds if they choose this model.

Once the fixed-rate period is over, you will move to a variable-rate loan and will be able to withdraw any subsequent additional repayments.

Additional repayments are allowed through all loan types, though you may encounter a few restrictions if you choose a fixed-rate loan.

There is no cap on additional repayments on your variable-rate loan. As detailed above, you can also withdraw these additional funds without penalty at your convenience.

AMP caps their additional repayments at $10,000 annually on fixed-rate loans. Take care to ensure you can afford these additional repayments, as redraw facilities aren’t offered for this loan type.

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