Re Loan payment options ...

[rooster78]

Hello Guys,

We are having Product Name: Professional Pack
Loan Split in 2 chunks : fixed of $450k for 3yrs and variable of $180k). Also have offset account with AMP.

We received docs from FMS which includes "Loan payment options form"
https://www.amp.com.au/wps/amp/au/F...?ids=f588f0cfa2b12210VgnVCM10000083d20d0aRCRD

But we are bit confused about it...with Part 2 which is "Payment details"
Please select one option below (A, B, C or D) by crossing ✗ the box for your preferred method of repayment.

We are planning to use Linked Offset Account which is option (A)

---------------
Option A ? Payment from LINKED Offset Account (complete if your repayments will be made from the Offset Account which is linked to this loan)
By selecting this option, your loan repayment will automatically be deducted from the Offset Account which is LINKED to this loan account.
Note: This option is not available for Line of Credit and Fixed Rate Loans.
Select your repayment frequency (Principal and Interest Loans only): Monthly Fortnightly Weekly
Interest Only and Lines of Credit ? only monthly payments are permitted
-----------------

As per above text above says "This option is not available for Fixed Rate Loans". So does that mean we cannot use option(A) for our both loan chunks (fixed of $450k for 3yrs and variable of $180k)?

Can you please check the "Loan payment options form" and tell me if we need to provide ANOTHER (non offset) account from AMP or ANOTHER bank account for Fixed Rate Loans?

I might be wrong but this form is confusing so please help

Anna

 

[D.T.]

This is what your broker is for you know

 

[Terry_w]

I had a very similar question today from a client - but variable with AMP.
Don't know the answers to your question.

 

[perthguy]

Hi Anna. I have 4 loans with AMP. One is a variable loan with a linked offset account and the other 3 are fixed interest. All the loan repayments are automatically transferred from the offset account when the interest payments are due.

You might have missed the part of the form that says "A separate Loan Payment Options form must be completed for each individual loan account for which repayments are being requested."

My interpretation of the form is this: you should complete the form for each loan. For your variable loan, use Option A ? Payment from LINKED Offset Account. For the fixed loan, use Option B ? Internal Transfer. The reason is that a fixed interest loan cannot be linked to an offset account, therefore the payments are not from a LINKED offset account. However, the payments can still come from an Offset Account via an internal transfer.

You should confirm this with your broker or AMP because my only knowledge of this is that I have AMP loans. I am not a banker or broker.

 

[Aaron_C]

Best to ask your broker. Just nominate the current AMP offset account for the payment authority for both splits (if you know the BSB/Account number) - this is not a problem.

 

[Colin Rice]

180k variable option A

450k fixed option B

Use a separate form for each with the appropriate account number in the box.

Thats the way I read it but would advise you call the AMP customer service on 1300 157 820 to confirm.

 

[perthguy]

Thats the way I read it but would advise you call the AMP customer service on 1300 157 820 to confirm.

^^^ this. I have called them a few times. I have always found them friendly and knowledgeable.

 

[rooster78]

Thanks Guys. You are very helpful

I just spoke to their associate @ 1300 157 820
She said same thing - Use a separate form for each loan account and simply tick option (A) box for BOTH loan accounts. They will automatically deduct amount from LINKED offset account.

 

[Peter_Tersteeg]

For the variable portion it's fairly obvious, use option A, the linked offset account.

You can't have an offset account with a fixed loan, so you select option B, but you nominate the account which just happens to be the offset account for the variable loan (option A in the first document).

 

[rooster78]

Interesting their Online rep and her supervisor gave diff info

(AMP Online Rep): Thank you for your patience, I have spoken with my supervisor. She has advised you will only need one form, just tick Option A for variable and Option B for fixed. And just make a note on the form.