AMP cuts home loan rates for interest-only borrowers

author-avatar By
on March 12, 2021
AMP cuts home loan rates for interest-only borrowers

AMP cut interest rates for a couple of owner occupier loans paying interest-only by 30 basis points this morning.

The cuts apply to the variable-rate 'Professional Package' series, for owner occupiers paying interest-only borrowing more than $500,000, with different comparison rates applicable to different LVRs.

These different rates are as follows: 

  • =60% LVR: 30 basis point cut to 2.99% p.a. (3.04% p.a. comparison rate*)
  • 60-80% LVR: 30 basis point cut to 2.99% p.a. (3.10% p.a. comparison rate*)

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.

Variable Home Loan (Principal and Interest)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 24, 2022. View disclaimer.

The latest mortgage deferral data for January indicates AMP had about 1% of its total residential loan book on deferred payments, totalling 919 individual facilities. 

However, that figure jumps for interest-only borrowers - about 10% of all AMP borrowers on interest-only payments were on deferred payments.

Interest-only borrowers also had a 19% share of all residential loan deferrals at AMP.

An AMP Bank spokesperson told Savings.com.au interest-only payments provide greater flexibility.

"While our owner occupier principal and interest home loan rates are already very competitive in the market, today’s reduction to the owner occupier interest only home loan will help provide more flexibility and greater options for clients – during what has been a challenging period for many Australians," they said.

Bankwest also cut a couple of investor home loans, as detailed below:

  • Investor 'Complete' Fixed P&I 5 Years: 61 basis point cut to 2.68% p.a. (3.85% p.a. comparison rate*)
  • Investor Fixed P&I 5 Years: 61 basis point cut to 2.88% p.a. (4.45% p.a. comparison rate*)

These home loans are applicable for borrowers with up to 90% LVR.

Earlier in the week, Westpac cut to its 'lowest ever' home loan rate, as did its subsidiaries St. George, Bank SA and Bank of Melbourne


Photo by Naseem Buras on Unsplash

Latest Articles

author-avatar
Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree
to the Savings Privacy Policy