Features

Fixed rate lock process for existing customers

A fixed rate home loan is a loan where the interest rate stays the same for a set period of time. This means the repayments don't change for that period, usually for a period of 1 to 5 years. Current home loan rates can be accessed from our Distribution Knowledge Centre website.

When a loan is fixed, there are limitations on the account:

• A fixed rate loan can only receive a maximum of $10,000.00 worth of extra repayments (above the normal scheduled monthly repayment) or lump sum for each year of the fixed term.
• Redraw is not available whilst in the fixed rate term.
• Access cards are not available on a fixed rate loan.
• Offset account cannot be linked to a fixed rate loan.
  
  

Existing home loan customers have the option to request for the following in relation to their home loan:

• Switch: A product can be switched from a variable rate loan to a fixed rate loan and vice versa. Break costs may be applicable for customers switching from a fixed rate (during the fixed rate period) to a variable rate loan.
• Re-fix: Switch to another fixed rate whilst on a fixed term. Break costs may be applicable for this instance.
• Re-fix at expiry: A loan is re-fixed after expiry of a fixed rate term.
• Split or combine: A variation is requested to split or combine existing home loan(s) between fixed and variable rates.
• Roll-Over to a variable: On expiry of a fixed rate term, the loan roll-overs to a variable rate loan. This is an automatic switch at the end of a fixed term.
  

What is the fixed rate lock feature?
Rate Lock allows a customer to lock in the current fixed interest rate on the day they request to switch to a fixed rate. This protects from rising interest rates and means if the request is processed days after the request was made, they will get the rate available on the dt of the request (rather than the current date). A rate lock fee is payable to lock in a rate.
If the current fixed rate for the term the customer has requested reduces below the customer's 'locked in' rate on the day of request is being processed, the customer will be given the lower rate. Rate Lock will hold the current fixed rate for up to 90 days after customer has locked in the rate for a fee of 0.15% of the loan amount.

Benefits:

• Rate lock ensures the customer gets the interest rate at the time of the request.
• This could mean savings on their monthly repayment.
  
  

Start and expiry date:
The Fixed rate lock 'start date' is the date the request and the fee or valid payment authorisation details (ie valid credit card number and signed authority) is received by AMP Bank (via email or post). A customer cannot request to secure a fixed rate that is no longer current. Example: If the 3 Year Fixed Rate changed from 4.89% pa to 5.09% pa on 2 June 2023, you cannot request a Fixed rate lock for the 4.89% pa rate on applications received on or after 2 June 2023. The 4.89% pa can only be locked in if the request and payment is received before 2 June 2023. 

Honouring a fixed rate
Please refer to this section to confirm the fixed rate applicable when processing request for a fixed home loan.

Switch from a variable rate loan to a fixed rate Loan: 
The rate to be honoured is the rate of the day on when the request is received by AMP Bank. This can be either via email or mail. Note that a completed form or signed request in writing should be submitted by either customer or broker.

Switch from a Variable to a Fixed Loan via Loan Variation: 
Same with a regular variable to fixed loan switch, the rate to be honoured is the rate of the day on when the request is received by AMP Bank. This can be either via email or mail. Note that completed form or signed request in writing should be submitted by either customer or broker.

Re-fixing a fixed rate loan (Fixed Rate Extension):
If customer submits a request to re-fix a fixed rate loan before the fixed term expiry, the customer will get the rate of the day we re-fix their loan. Please note that the customer can pay a rate lock fee for a fixed rate extension. The fixed rate this is applied is the fixed rate of the day on the day that the completed rate lock form is received by AMP Bank.

Note: If a customer or broker send a request where it or the form has outstanding information, we will honour the rate when outstanding information has been returned to AMP Bank (eg missing signature or incorrect card details).

Fixed rate lock process for new customers

Rate lock request with submitted application.
To request a rate lock when submitting an application, please select rate lock in the loans tab screen, under ‘features’ for the specific loan. This is to be accompanied with the Fixed rate lock request form.

Rate lock request after submission of application.
To request a rate lock for an application already in the pipeline, please have our Fixed rate lock request form completed and upload it to the application via app centre.

The Fixed rate lock request form can be located on the Distributor Knowledge Centre. Once the completed form is received by AMP Bank, the fee will be charged via the method nominated by the customer to lock the rate in. This fee is not refundable if a customer changes their mind or if rates go down but is refundable if the loan is declined. The fixed rate that is locked, is the fixed rate on the day the form is received by AMP Bank and is applicable for 90 days from the date AMP Bank receives the request and payment authorisation. Incomplete forms may impact the customers' ability to secure a rate. Where possible, we will call you or the customer directly to assist with updating the form.

Fees
0.15% of the original Fixed Rate loan amount is payable to secure the fixed interest rate on a fixed rate loan for 90 days from the date this fee is received (this date is also referred to as the fixed rate date quoted). This fee is not refundable.

AMP Bank must receive payment or authorisation for payment with the Fixed rate lock request. The fee cannot be deferred until settlement, nor paid from the proceeds of the loan.

If AMP Bank declines the application for any reason, the Fixed rate lock fee will be refunded. The Fixed rate lock fee may not be refundable if the loan application is withdrawn.

What is AMP Bank’s First Home Buyer Family Guarantee?
Borrowers can now get a foot on the property ladder more easily with AMP Bank’s First Home Buyer Guarantee.

Existing AMP Bank home lending customers, or those who own a property that isn't mortgaged can use equity in their residential property to guarantee part of the new loan, without having to provide a cash gift or loan, as a family guarantor. The family member providing the guarantee must be a parent, step parent, de-facto to the parent or former legal guardian of one of the borrowers.

The First Home Buyer Family Guarantee reduces the loan to value ratio (LVR) to 80%, so there’s no need to pay lender’s mortgage insurance (LMI). To do this, the eligible family guarantors provide a limited guarantee, secured by their own residential property, in lieu of a deposit.

How does it work?
Scenario: You want to buy a $70,000 home but only have a $50,000 deposit after paying for expanses connected to the purchase.

Pre-guarantee: Loan amount/Property value = Loan to Value Ratio (LVR)
$650,000/$700,000 = 93% In this case, you’d need to take up LMI as the LVR is greater than 80%.


Post-guarantee: Loan amount/(Porperty value + Family Guarantee) = Loan to Value Ration (LVR)
$650,000/$70,000 + $112,500 = 80% In this case no LMI is required as the LVR is 80%.

Run a scenario in ApplyOnline^® or use the serviceability calculator to support you and your customers who may be interested in getting on the property ladder.

What are the benefits?

• The First Home Buyer Family Guarantee can help your customers:
  • buy their first home sooner | Enter the market without needing to save for years, with more financial freedom to choose their ideal home.
  • reduce their deposit to zero | Pay only costs associated with buying a property and establishing a home loan, plus stamp duty if applicable.
  • increase their borrowing power | Maximise the amount they can borrow, up to 100% of the purchase price.
  • boost their savings | Save money when they need it most as they won’t pay LMI.
  • enjoy an early release | Apply for a release from the guarantee as soon as the LVR drops below 80%...no need to wait until the loan is fully repaid.

The First Home Buyer Family Guarantee is available for the Professional Package and Basic Package home loan products.

Who can apply?

Borrower
Must be a first home buyer purchasing a residential property that they intend to live in and meet the following criteria:

• Maximum loan amount is $1,000,000.
• Property must be located in zones 1 & 2.
• Loan repayment type must be P&I only.
• Not available for investment loans.

Guarantor
Must be parents of one of the borrowers and meet the following criteria:

• Must own the property used as a guarantee, and all security holders must become guarantors.
• Guarantor’s property must be located in zones 1 & 2.
• Property must be unencumbered or already mortgaged to AMP Bank.
• The guarantee amount must not exceed 50% of the property value.
• Only one guarantee per application.