Why choose AMP over Macquarie?

Discussion in 'Loans & Mortgage Brokers' started by Ross36, 13th Jun, 2022.

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  1. Ross36

    Ross36 Well-Known Member

    Joined:
    14th Aug, 2015
    Posts:
    594
    Location:
    Cane Toad Country
    Hi all,

    When looking at debt recycling it seems that AMP Professional Package and Macquarie Offset are the two best offerings. Comparing the two of them it seems that Macquarie has a slightly lower rate, lower annual fee, gives you free Qantas points and from my understanding is simpler than it used to be to create different splits.

    Are there any reasons to choose AMP over Macquarie if refinancing (i.e. the $3000 offer at AMP currently is only for new purchases)? Is is simpler to do the splits, combine them later on etc.? Is AMP better known for customer service?

    Thanks
    Ross
     
    Ross36, 13th Jun, 2022
    #1
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  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,654
    Location:
    Gold Coast (Australia Wide)
    AMP allows 2 things that Mac does not

    Master Limit for up to 10 years, meaning the total loan facility can be taken back to the original limit over that time. Powerful for those that have spare cash sitting in PI Owner occ offset, since this reduces the Loan limit quite quickly ie full PI repayment every month, but less interest billed to the loan.

    Debt recycle from PI owner occ to IO investment, for those on midfle and higher marginal tax rates, this can make an active debt recycle strategy sing.

    All of these are only of value if someone actually does something with the tools.

    We have found most people get all excited about the benefits of an active debt recycle strategy, but never get started, because there is more to a strategy than the loan

    Mac is better at the front end getting the loan approved by a bit, and we have found both AMP and MAc can be so so with post settlement stuff, just like most lenders most of the time.

    The QF points at Mac do come with a rate loading of .05 % so not free per se


    ta
    rolf
     
    Rolf Latham, 13th Jun, 2022
    #2
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