AMP IP Rates

Discussion in 'Loans & Mortgage Brokers' started by TMNT, 22nd May, 2019.

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  1. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    AMP fixed doesnt have any offset

    ta
    rolf
     
    Rolf Latham, 24th May, 2019
    #21
  2. Hillbilly

    Hillbilly Active Member

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    I just switched an Investment PI loan with AMP from variable to fixed for two years with a rate of 3.82%. The variable rate had gone up to mid 5%. They also said they have a “special” on and didn’t charge me the usual $365 or whatever in a switching fee.
     
    Hillbilly, 16th Jun, 2019
    #22
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    As an aside, variable IO rates at AMP for > 750 volume for new business at 4.24 pre rba redn.

    We are getting some pretty decent repricing as well, not to the extent above, but in some cases 50 to 100 pts off some of the old book stuff on pro pack

    ta
    rolf
     
    Rolf Latham, 16th Jun, 2019
    #23
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    AMP will also give OO rates to investment debt in certain circumstances
     
    Terry_w, 16th Jun, 2019
    #24
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Part of those circumstances is that little bit of possible cumulative poison called cross collateralisation.

    if its best business practice to avoid same, what is the rate price that one is willing to go down that path ?

    few of my clients have chosen same for various reasons, usually rate, and or cash back.

    Each borrower need to make their own decisions, but they need to have the correct data to make the call

    ta
    rolf
     
    Rolf Latham, 16th Jun, 2019
    #25
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    It can be done without cross coll
     
    Terry_w, 16th Jun, 2019
    #26
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  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    We have tried, and we do a fair bit with AMP, your BDM has more pull than ours

    One of the rules of their special is a single application for both securities.........

    Did another with cash out for investment properties and even owner occ holiday homes, had to be IP rate, because ONLY share cash out can be coded as PPOR pricing due to ASIC reporting.

    As always happy to learn.

    ta

    rolf
     
    Rolf Latham, 16th Jun, 2019
    #27
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    what if there is one security.
     
    Terry_w, 16th Jun, 2019
    #28
  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Isnt the typical senario for most of my clients dont have the equity, but anyway

    Got declined PPOR pricing literally last week for a single security for cash out for a Hobby farm 2nd PPOR............., had to be priced at investment rate, secured to the PPOR only, Hobby farm will be free title.



    Yep could have told porkies and got PPOR PI rates , and said its for shares or future but then their credit for cash out > 100 k want an SOA from a planner................

    Im not saying it cant be done, just saying we couldnt get it done

    We did the AMP deal still because the Global facility limit will be worth a whole lot more to us here than a few points on rate


    ta
    rolf
     
    Rolf Latham, 16th Jun, 2019
    #29
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  10. ChrisP73

    ChrisP73 Well-Known Member

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    @Rolf Latham @Terry_w

    You guys saying that for an AMP pro pack secured only against PPOR, splits where the borrowed $s are used for share investments should qualify for OO rates, and that investment rates are only for investment realestate?
     
    ChrisP73, 16th Jun, 2019
    #30
  11. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    thats what we have put up of late, and mixed with the Master Limit facilty

    ta

    rolf
     
    Rolf Latham, 16th Jun, 2019
    #31
  12. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    But as Rolf said they want a statement of advice where larger sums involved.
    A way around this is perhaps to borrow more initially and debt recycle - but no always possible
     
    Terry_w, 16th Jun, 2019
    #32
  13. ChrisP73

    ChrisP73 Well-Known Member

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    Good to know - thanks. Only 10 basis points in it for IO above 750k but for P&I @ 35bp difference it starts looking more interesting particularly with a master limit as long as servicing calcs don't get in the way.

    Thank @Terry_w
     
    ChrisP73, 16th Jun, 2019
    #33
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  14. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    sent an email to my AMP BDM this morning to confirm and she replied (kindly on a sunday) that owner occ rates would apply to my scenario where there is one security. A new strategy worth looking into.
     
    Terry_w, 16th Jun, 2019
    #34
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  15. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Declined 2 weeks ago, but got the below from My BDM - also on a Sunday :), obviously all running under budget.

    worth the chase at 1125 k, i asked if Connective get a different deal to CAS, and the response in blue came back

    Thanks TW


    It’s fine Rolf It Has now been confirmed you will get OO rates on the below deal .
     
    Rolf Latham, 16th Jun, 2019
    #35
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  16. ChrisP73

    ChrisP73 Well-Known Member

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    Got another scenario. What if AMP loan secured against investment property is paid down completely and then funds are redrawn and used to purchase shares. Do you rate your chances of having the loan recategorised/repriced at OO rates with AMP in the current environment? Or do you think it would be a flat no due to the security?
     
    Last edited: 27th Jul, 2019
    ChrisP73, 27th Jul, 2019
    #36
  17. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    It depends if you tell them
     
    Terry_w, 27th Jul, 2019
    #37
  18. ChrisP73

    ChrisP73 Well-Known Member

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    You may have misread the question. Assume you do tell them as you're motivated to reduce interest costs from investor rates down to OO rates.... Hence the repricing request....
     
    ChrisP73, 27th Jul, 2019
    #38
  19. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    If you tell them then you would get investment rates
     
    Terry_w, 27th Jul, 2019
    #39
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