AMP Bank Home Loans

Compared to the big four banks, AMP has a fairly modest chunk of the home loan market in Australia, holding 1.06% of the mortgage market in 2022 according to APRA. That’s still the 12th largest home loan provider in the nation though, with 9,400 new home loans written throughout the year.

AMP has several home loan products for both owner occupiers and investors. All of the below options are available for both, and can all also be switched to interest only repayments.

Essential Home Loan

The Essential Home Loan is the most no frills variable rate home loan option at AMP. There are no ongoing fees, no settlement fee, and the variable rate is normally lower than the Basic Package. While there aren’t many extra features, it still allows for unlimited extra repayments and free redraw.

Basic Package

The Basic Package allows borrowers the option to fix their rate, either partially or in full. There are no monthly account keeping fees, although a settlement fee of $349 applies. When the loan is fixed, overpayments are capped at $10,000 per year without penalty, although there are unlimited extra repayments on the fixed portion. Redraw is unlimited on variable rate loans and there are no withdrawal fees.

With a Basic variable rate loan, you can also set up an offset deposit account for a monthly account management fee of $6.

Professional Package

AMP's Professional Package is a premium product that currently offers lower variable rates than even the Essential loan. Other benefits include multiple offset accounts, the option to fully or partially fix, unlimited redraw on variable loans and the flexibility to split the loan. The downside is a $349 annual fee, but you could still come out ahead if you are saving more than this on interest each year.

Land Loan

For those looking to purchase a plot of land with the intent to build, AMP’s Land Loan offers a tailored solution. This loan type provides the flexibility needed during the construction process, including progressive drawdowns that allow borrowers to access funds as needed during different stages of construction. Redraw is unlimited, but the settlement fee applies.

Land loans are exclusively on variable rates, and offset accounts are not available. Land loans are relatively rare among challenger banks.

Special offers

There are a couple of AMP products that are only available for VIP customers. The Select Package is reserved exclusively for corporate superannuation members and AMP limited shareholders, while the AMP First loan is only for shareholders, employees and some other client groups. You can’t just apply for these products, but if you think you might be eligible you can get in touch with AMP and check out your options.

AMP Bank Home Loan Reviews

Eligibility

To qualify for an AMP home loan, applicants need to be over 18 and an Australian citizen or permanent resident.

As with any lender, you’ll also need to demonstrate your ability to repay the loan. This will involve providing proof of income and expenses, while the bank will also run a credit check on you. The serviceability buffer (3%) still applies, so if you’re applying for a loan with AMP at 6% p.a, you’ll need to show you could still make repayments at 9% p.a.

Application time

AMP offers a digital application process which it says is streamlined to be as efficient as possible. According to the website, the majority of home loan applications done digitally are approved within 24-48 hours.

To apply online, customers need to:

• Be over 18 and a permanent resident

• Earning a salary or self employed and trading for at least 2 years

• Have an LVR of 80% or less, with a loan sized between $250,000 and $2 million.

Rates and features

AMP offers both fixed and variable rate loans depending on the product. In general, its rates tend to be competitive compared to the other big banks - as of April 2024, the lowest advertised rates at AMP are lower than all of the big four’s.

AMP also offers an unusual feature called the ‘master limit’. Customers get a pre-approved lending limit that they can borrow against the equity in their property. This means loans can be restructured without needing to reapply and go through credit assessment.

Fees

As of April 2024, the following fees apply on AMP home loan products.