AMP - new variable rate pricing from January 8

As predicted... now that the banks are meeting theior 30% IO quotas for NEW business, we are seeing some IO pricing is starting getting cheaper

Still no changes to servicing calcs though... so while you may be able to take some solace from the IO premiums coming off a little, borrowing lots and lots of money isnt getting any easier

 

Hopefully they continue with that. Got a reminder from one of my banks yesterday that my 2 yr intro rate ends in June and goes up 0.5% for all loans.

 

Nice rates....will they change their serviceability policy if i hold a Kalishikov to their head?

 

No movement on their fixed rates?

 

The Master Limit facility is back too.

 

AMP always goes hard early... I wrote about this many times in previous threads. They did after APRA Round 1. They did again for APRA Round 2. And just like with APRA 1, they came back slowly but surely around November/ December

The reason is simple - they are the only lender who reports to APRA by calendar year, rather than financial year...so they have to meet targets 6 months earlier than everyone else.

Again though, even though master limit is back, and their SMSF ( with offset - thank you very much) is back ... servicing is still conservative.

Master Limit, 10 interchangeable sub accounts etc... great product. Still THE best lender for PPOR debt reduction, facility wise at least... and now their rates are great too.

 

Their business could pick up with those rates. Might be time to buy AMP shares.

 

Is my existing loan transferable to AMP's Master Limit. I currently have a LOC securitized against my PPOR with 4 splits (max 10 which I believe will cost $ each request, I could be mistaken). The first 3 are used for 3 separate IP deposits and the 4th holds the remaining equity, waiting to be used. I have no Non-deductible debt. Straight up LOC used for IP.

If I want to move to this Master Limit product, can I organise the exact splits (to the cent) so the deductions are like for like and I can easily show that there is no mixed purpose? I'm trying to consolidate as much of my deposits in to its own IP loan, freeing up the LOC but if I can consolidate 2 of the 3 soon, I'd be pretty chuffed.

 

Yes

 

Yep.. its perfect for what you are seeking

 

My current loan doesn't have any annual fees which is good but since it's 3.78%, moving to AMP and paying the $395 will be better off rate-wise but if my lender matches then it won't be as appealing. Even though I'm on an OO-P&I rate, if I move to AMP on OO-P&I but the splits (used for IP), can the $395 be tax deductible or is it considered part of my PPOR?

 

if the loans are solely investment related the fee could be deductible in full.

 

The AMP product offers flexibility you cant get anywhere else... particularly for cash out and the customisation of loan splits/sub accounts for investment and accounting/tax purposes.... If its the sort of flexibility you consider valuable, I think $395 is peanuts to have that flexibility. If its not the sort of flexibility you consider valuable, then perhaps not.

I have used it a lot with my clients - particularly when drawing equity from their PPOR. It makes their record keeping/account keeping really easy as they can move money between each sub account without requiring re-documentation or reassessment. They can customise each sub account for the exact dollar amount for each purchase... ie the deposit and stamp duty and other costs. They all seem to love it , or at least really like it .... The useability and flexibility is extremely handy for investors.

But if you are solely rate and fee driven, it may not be for you. I personally think rates and fees are well down the list of considerations for investors - and if they arent they should be. Access to your equity, and the terms under which you can access it and use it are far more important on my list of considerations...

 

Understood. My product actually has a global limit and up to 10 splits. I'm not sure how 'easy' it is to access equity but I had an re evaluation last year and no issues. No reassessment etc so I think it's similar, that's why I'm going down the priority list and comparing rates now.

I think the other thing I'll curious about is what is the maximum IO period? My current one is 10 years (5 year max) for the entire loan.

Other loans I have only have IO for only the first 5 years. I'd be looking for flexibility if the need arose.

 

5 years with AMP but if you are on a 10 year Master Limit you might be able to extend this once.

 

Are these rates for new customers only?

 

yes

 

How can I apply for this loan package? direct or via broker?

 

Either