What are AMP like to deal with?
- Thread starter mystery
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From a brokers perspective they're usually only used when borrower is close to hitting a borrowing capacity wall and/or need to use a lender that doesn't credit score and has a decent DUA (could be any number of reasons why this could be the case).
Their cashout policy up to 90% is good - wouldn't use them for deals above 90% because they defer to genworth.
All in all - not a bad lender but usually used later on when borrower has a few IPs under the belt.
Cheers
Jamie
Their cashout policy up to 90% is good - wouldn't use them for deals above 90% because they defer to genworth.
All in all - not a bad lender but usually used later on when borrower has a few IPs under the belt.
Cheers
Jamie
Jamie has hit the nail on the head. AMP's servicing model can outshine most others, particularly at 80% LVR's where the generous servicing bumps up even further. They do have a finnicky policy however in that if you have 10 IP's, the music stops for lending - keep this in mind.
AMP are a niche lender for the reasons Jamie and Corey have described. Their servicing model and cash out policies are excellent. They have several other areas where they excel.
I have found they're fairly difficult to deal with as a lot of their systems and processes are fairly antiquated. Increases, variations, can be painful when compared to some lenders.
They certainly have their place, but you probably wouldn't choose them unless there's a specific reason.
I have found they're fairly difficult to deal with as a lot of their systems and processes are fairly antiquated. Increases, variations, can be painful when compared to some lenders.
They certainly have their place, but you probably wouldn't choose them unless there's a specific reason.
Wow, ... thank you all for your quick and informative replies, .. it is very much appreciated.
We have a few IP's, .... we are both over 55 and are probably getting close to borrowing capacity. Probably why the mortgage broker mentioned them.
They are the only lender that has said, .. Yep, .. no problems, .. put in the application and it should be fine. All other banks etc have come back with ... submit an application as we review on a case by case basis.
Thank you all once again. Looks like we can go property hunting once again.
All the best
Mystery
We have a few IP's, .... we are both over 55 and are probably getting close to borrowing capacity. Probably why the mortgage broker mentioned them.
They are the only lender that has said, .. Yep, .. no problems, .. put in the application and it should be fine. All other banks etc have come back with ... submit an application as we review on a case by case basis.
Thank you all once again. Looks like we can go property hunting once again.
All the best
Mystery
Makes sense. AMP might be on my short list under those circumstances.
Most lenders have an 'age' policy. AMP does as well, but they generally don't apply it to investment purchases.
Most lenders have an 'age' policy. AMP does as well, but they generally don't apply it to investment purchases.
You are right about the age policy Peter, ..... as you said as long as the purchase is for an investment property then they are fine.
Mystery
Just over 3 years ago, my investment partner and myself refinanced all our loans to AMP. I kept the loans for 3 years and have moved two of them to ING to get a much better interest rate. I found them great to deal with. Good post loan customer service. The only issue I had was with their mortgage solicitor firm when their mortgage solicitor told me over the phone that the deal would not happen. I understand they are using another firm now. Overall, I was really happy with them and have only moved 2 loans due to a lower interest rate with ING.
That seems like a very odd thing to do - must have had some pretty specific circumstances to warrant that?
Agree with what others have said. From my experience
- Save them towards the end of your accumulation phase
- Can't go past IP10
- Their paperwork takes a bit longer so give them ample time
- They have a tendency to put additional conditions on loans. The last one I did AMP wanted to control the equity release along with the settlement
- They aren't great at negotiating rates
- Save them towards the end of your accumulation phase
- Can't go past IP10
- Their paperwork takes a bit longer so give them ample time
- They have a tendency to put additional conditions on loans. The last one I did AMP wanted to control the equity release along with the settlement
- They aren't great at negotiating rates
Yeh, I found it really strange.
I was refinancing a loan from Westpac to AMP to access equity (88%) and at the same time purchasing an IP with AMP at 80%.
They wanted to control the equity release to pay for the IP settlement. The actual clause on the loan document:
The 2 new Amp loans refer TFXXXXXXXX and TFXXXXXXXX will need to settle simultaneously.
Yep. Long story short, just over 3 years ago all the loans were at an average interest rate of 9.5%. Today the ING loans are at 4.63% and the AMP is 5.2%. Will address the AMP next.
From a customer point of view - I found them terrible actually. They have their place, as the brokers mentioned, but they take a long time to get anything done, charge exorbitant fees, and a small forest is cut down somewhere each time a loan is established with the amount of paperwork they send out. Twice over.
Personally they are not a lender I would use again, unless I had no other options.
Personally they are not a lender I would use again, unless I had no other options.
^ over 55, reaching servicing and for IP.. As Pete mentioned i would def consider AMP as well.
Their 3 years fixed rate of 4.65% is pretty attractive ( well was attractive before the rate cut lol)
Amp tend to have a high Variable rate and low fixed rate.
Make sense...if i was the lender i probably would have done the same.
Probably one of the reason why your NEW loan services is because you done it at 80% ( So amp can take in 100% of your rent) ...so make sense for them to control + Given the high LVR as well.
But all in all..it works fine for controlled funds ESP if the new loan is going to that same bank anyway + you found the place.
They dont like you to be on probation unless it is waived in writing by employer.
I find them ok to deal with generally. I do have a pro active and knowledgable BDM so that helps.
I find them ok to deal with generally. I do have a pro active and knowledgable BDM so that helps.
Yeah I agree with this. I've had a few with them in the past but things like creating new titles/ssubdividing and anything involving anyone needing a tiny amount of common sense in their back end left we wanting to slap them and this wasn't just the one occasion.
Useless back end but good serviceability
