Amp

[Montoya]

Hi All.

I tried to use the search function to find any existing information on AMP as a lender for investment purposes, but the search engine doesn't like the term because it is either too short or too common.

Does anyone have tales, whether good or bad, in using AMP for a home loan? Our broker tells us that they don't credit score, which is great for our current situation, but I know there are many others out there that don't either. They don't add a buffer to our current loan repayments, and they have delegated underwriting authority with Genworth. Their rates are competitive against the Big4, but nowhere near as good as other lenders.

Alternatively, if there is already a thread out there with such info that someone knows of, a link would be greatly appreciated.

 

[DaveM]

Good servicing, 10 IP cap so use them up before you get to 10. Loan docs arrive as thick bundles of papers that are somewhat unintelligable and need a JP to witness

 

[chilliblue]

We hold two loans with them and to date (fingers crossed) not one problem.

 

[Michael_X]

Helpful thread here

http://somersoft.com/forums/showthread.php?t=105906

Covers some good points on AMP.

 

[Montoya]

Helpful thread here

http://somersoft.com/forums/showthread.php?t=105906

Covers some good points on AMP.

Thanks for the link, and to the others that posted. Sounds like our broker is on the money, and they are suitable for us... for now. There is always the option of refinancing after all at a later date, the important thing for us now in the acquisition phase, is to get the approval!

We're a bit far from 10, but as we learn more and more in our investment journey and change our strategy to suit our goals, 10 may very well be on the cards in the next 10 years.

Once again, thank you to all for your quick responses.

 

[Corey Batt]

They certainly have their niche, mainly in the serviceability department. Generally I will be only using them when clients are scraping their bottom of the serviceability barrel - definitely not earlier on. The other common scenario is when you have multi-owners and need to apportion debt.

Is your current servicing quite tight from an existing reasonable portfolio? If not there are a lot of other lenders earlier in the queue which would be more suitable.

 

[Montoya]

They certainly have their niche, mainly in the serviceability department. Generally I will be only using them when clients are scraping their bottom of the serviceability barrel - definitely not earlier on. The other common scenario is when you have multi-owners and need to apportion debt.

Is your current servicing quite tight from an existing reasonable portfolio? If not there are a lot of other lenders earlier in the queue which would be more suitable.

We currently have a high level of unsecured debt but a strong double income with no dependants, and 1 CF+ IP, and 1 barely CF- IP (<$2000pa) We had the option of consolidating all our debts with the release of equity and then purchase again in another year or two, or find a lender that would be OK with this large personal debt. We opted for the later, for a few reasons:

a) our personal debt should be paid off in 12-18 months time at the current repayment amount anyway

b) the interest of the equity release if used to pay off our personal debt and not for investment purposes would not be tax deductible

c) we think now is the time to buy in the area we've been researching (we're jumping on the Redcliffe/Kippa-Ring area bandwagon)

d) purchasing in the next few months will mean sticking with our 5 year plan.

I know its said time and time again, to reduce your bad debt ASAP, but when taking into account the opportunity costs of using the equity release for the bad debt, I still think we're better off this way.

 

[Jamie M]

AMP - good for non credit scoring and ability to approve LMI in-house for sub 90% deals.

Great servicing calculator - especially for sub 80% deals where they take 100% of rental income into consideration.

So on that note - awesome lender for when coming close to hitting a servicing wall.

Good cashout policy at high LVR.

Not usually a first up lender (because of their generous borrowing capacity calculator) - best to keep in the pocket for later on in the acquisition stage (but not too late - if you have 10 properties they won't talk to you).

Cheers

Jamie

 

[The Y-man]

Roland Cube 20x....... duh, wrong sort of amp.........

The Y-man

 

[Rolf Latham]

Use as required if no other options are available

Lender of choice generally no

They have a great global facility limit policy that u can use with your planner to debt recycle

Ta

Rolf

 

[hugh72]

AMP - good for non credit scoring and ability to approve LMI in-house for sub 90% deals.

Great servicing calculator - especially for sub 80% deals where they take 100% of rental income into consideration.

So on that note - awesome lender for when coming close to hitting a servicing wall.

Good cashout policy at high LVR.

Not usually a first up lender (because of their generous borrowing capacity calculator) - best to keep in the pocket for later on in the acquisition stage (but not too late - if you have 10 properties they won't talk to you).

Cheers

Jamie

Hi Jamie
Is it the case that they won't consider rental income from 10 properties or no more than 10 property loans if you know what I mean
Hugh

 

[Kinnon Bell]

Once you hit property #10 they won't even let you through the door to say hello.

 

[hugh72]

Thanks Kinnon, does that mean you are considered rent reliant?

 

[Kinnon Bell]

Thanks Kinnon, does that mean you are considered rent reliant?

Yes, too rent reliant apparently.

The 10 still counts even if the IP's are unencumbered.

I suspect that they're books were weighted too much on the investor space as they're mainly a broker reliant lender whose brokers send apps through when their investor clients are reaching their limits, so this is more on the risky end of the leading spectrum for AMP. In order to get more balance on their books, change of policy that won't impact the masses but would exclude the potential customers who they deem to be too risky cause a highly geared FHB isn't risky....

 

[Rolf Latham]

Once you hit property #10 they won't even let you through the door to say hello.

Persona non grata

similar to an undischarged bankrupt

ta

rolf

 

[Corey Batt]

Ham fisted policy, which works quite contrary to their servicing niches. But lenders have always had rudimentary schizophrenic policy sets.

 

[Rickardo]

Any ideas when/if AMP are going to lower their fixed rates?

 

[Aaron Sice]

20th Feb IIRC

 

[Juliana Ardila]

Hi All.

I tried to use the search function to find any existing information on AMP as a lender for investment purposes, but the search engine doesn't like the term because it is either too short or too common.

Does anyone have tales, whether good or bad, in using AMP for a home loan? Our broker tells us that they don't credit score, which is great for our current situation, but I know there are many others out there that don't either. They don't add a buffer to our current loan repayments, and they have delegated underwriting authority with Genworth. Their rates are competitive against the Big4, but nowhere near as good as other lenders.

Alternatively, if there is already a thread out there with such info that someone knows of, a link would be greatly appreciated.

Hi Montoya

I have had not problems with AMP and I agree with your comments.

Not to forget that AMP has a basic home loan option that has not annual fee and you can link an offset account to it for $5 per month. Their basic variable rate is actually quite competitive given all your other reasons for using them.

Is this what your broker is offering you?