Manage your AMP home loan

How to get the most out of your home loan

We’re constantly looking for ways to make it easier for our customers to manage and make the most of their accounts.

Take advantage of a few basic repayment strategies and you may be able to pay off your loan sooner. Utilise built-in loan features and optional accounts on offer. Be sure you get to know and use all the features that come with your home loan.

Some ways to get the most out of your home loans are:

• Pay off your home loan sooner
• Access your equity
• Changing your home loan.

Your circumstances may change during the life of your loan so it’s wise to regularly review the features and structure of your loan to see how well it matches your needs. AMP Bank also introduces new types of loans from time to time based on changes in the marketplace [so you should keep this in mind].

Take time to look over a few key questions the next time you are choosing your home loan.

Changing your home loan

As your needs, goals or situation change, you may want to consider changing your home loan to better meet your needs. 

Discharging from AMP

Before you jump ship, it may be worth having a chat with a home loan specialist to see if they can assist in making your current home loan work better for you. If you would like to speak to someone before exiting from your home loan, please call 02 8364 6758.

It is important to understand the fees and costs involved in refinancing your home loan. AMP Bank charge a $390 discharge fee, as well as the Land Title Office (LTO) which varies by state.

How to discharge:

You will need to complete a Loan discharge authority form. This will ask you about your property, the key people involved, and the loan account details. It will also provide you with details on lender fees and any government charges you will face when you finalise your exit application. Expected processing times are listed below.

The Partial Discharge and Substitution form can be completed on My AMP online or app, alternatively is available for download here. To complete a full discharge, please contact us on 02 8364 6758 or info@ampbanking.com.au.

Increasing your home loan amount

There are a number of reasons why your financial circumstances change and you may need additional funds. With eligible AMP home loans, an option you may have is to increase or top up your home loan. Topping up your home loan can be a quick and effective way to access additional funds you need.

If you want to consolidate your debts, renovate your home or make a large purchase, you can fund this by increasing your loan. Topping up your loan can be a cost effective solution as interest rates on home loans are typically lower than credit cards or personal loans.

The amount you are able to increase your loan by is dependent on how much equity is available in your property, your current financial situation and is also conditional on credit approval. Also by increasing your loan amount, this can mean your repayments amounts may increase. It is important that you seek financial advice to determine that this is the best solution for you. There may also be fees associated with increasing your loan amount.

For further information or to increase your home loan, please visit our Increasing Home Loan page, call us on 13 30 30 or email info@ampbanking.com.au

Refinancing

Refinancing is where you replace your existing home loan with a new one that’s ideally more cost-effective and flexible. It may involve changing your home loan product with your current provider, but often it will mean switching to a different lender who can offer you a better deal.

Some of the reasons you may look to refinance include:

• You want to pay less. If you can find a lower interest rate, you could save money and reduce your repayments. Even a 0.5% reduction on your interest rate could save you tens of thousands of dollars over the life of your loan.
• You want a shorter loan term. When interest rates are down, you may be able to reduce the term of your loan—from 30 to 25 years for instance—without too much change to your repayments, meaning you may be able to pay off your home loan sooner.
• You want access to better features. You may be looking for further cost savings and greater flexibility with the help of added features, such as unlimited additional repayments, redraw facilities, an offset account or the ability to tap into your home equity.
• You want a better deal, more flexibility or security. Converting to a fixed, variable or spit-rate interest loan may provide you with these things.
• You want access to your home equity. Equity can be used to secure finance for big ticket items such as an investment property, renovations or your children’s education. This can be risky though because if you don’t make the repayments, you could lose your home as a result.
• You want to consolidate existing debts. If you have multiple debts, it could make sense to roll these into your home loan if you’re diligent with your repayments. This is because interest rates associated with home loans are generally lower than other forms of borrowing.

Do you know what you want? If you’re looking to refinance, do you know what it is you’re after—a lower interest rate, added features, greater flexibility, better customer service or all of the above? It’s important to determine these things so when you’re researching other loans, you know exactly what you’re after.

Do the financial benefits outweigh the costs? You might be able to save money over the long term by refinancing, but the upfront costs can still be expensive. For this reason, it’s a good idea to investigate where costs may apply, or be negotiable—think discharge fees, registration of mortgage fees and break costs if you have a fixed-rate loan. Also think about application costs if you swap lenders—establishment fees, legal fees, valuation fees, stamp duty, and lender’s mortgage insurance if you borrow more than 80% of the property’s value.

Has there been any change to your personal situation? An application process if you want to refinance will apply. This means your lender will take into account things like your employment situation, additional debts you’ve taken on, or if you’ve got a growing family as all these things can impact your borrowing potential.

What's next? Refinancing can be a wise move if it can save you money, get your debt under control or give you more flexibility in achieving your goals. It’s important to evaluate the pros and cons if you are considering refinancing. These can be complex so you may wish to speak to your adviser. If you need help finding one, call us on 131 267 or use our find an adviser tool. For further queries or information on how to refinance with AMP please contact us on 13 30 30 or info@ampbanking.com.au

Accessible banking

AMP Bank is committed to improving accessibility of our banking products and services for clients with a disability, older customers and clients with limited English.

Read more about accessibility.

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