The innovative new home loan is available to eligible borrowers including retirees, pre-retirees, investors and owner-occupiers
AMP Bank becomes the first retail bank in Australia to offer this home loan for new and existing owner-occupiers
Unlike typical products which require reassessment after five years, this home loan provides greater certainty and stability for the full interest-only term
AMP Bank has today launched a 10-year interest-only home loan with no mid-term reassessment, providing customers with more choice, long-term financial flexibility and greater control over their cashflow.
The new loan is now available to eligible borrowers, including retirees, pre-retirees, investors, and owner-occupiers.
The offer seeks to address the changing needs of consumers, especially retirees and pre-retirees who are seeking additional cashflow for one off large expenses, or enhance their quality of life in retirement.
Michael Christofides, Director of Lending & Everyday Banking, AMP Bank, said:
“In the past 20 years, the number of Australians aged 55 to 64 who own their homes outright has significantly decreased. Consequently, more people are carrying debt into retirement – a trend set to continue.
“While paying off a mortgage early is often advisable, maintaining flexibility and unlocking property equity can be beneficial, especially in the early years of retirement when many underspend out of fear of outliving their savings.
“For some retirees, the reality is that increasing equity in their property offers no felt benefit; instead, they could use additional cashflow to enhance their quality of life.
“Our new interest-only loan is a simple solution designed to provide this optionality and financial flexibility for retirees.”
Features and benefits
10-year interest-only term: A decade of interest-only repayments, offering long-term cashflow support.
No mid-term reassessment: Unlike typical products which require reassessment after five years, the loan provides greater certainty and stability for the full interest-only term.
Flexible eligibility: Available to a wide range of borrowers, including retirees, pre-retirees, self-employed individuals, owner-occupiers, investors, and rent-vestors.
Financial confidence: Enables longer-term strategic financial planning, whether it’s unlocking home equity in retirement or supporting investment goals in earlier life stages.
Quality of life in retirement: Helps older Australians retain equity in their home, remain in their home, while unlocking cashflow to improve quality of life.
Empowers younger buyers: Provides an alternative pathway into the property market, particularly for younger Australians through rent-vesting strategies.
Simplified administration: Reduces paperwork and ongoing reassessment burdens, especially helpful for those with non-traditional income sources.
New financial realities
Generational change: Census data from 1991, 2006 and 2021 shows that home ownership, for those aged between 25–39 years has decreased in each successive generation1
Rising debt in retirement: 9 in 10 Australians over 50 believe they’ll still be paying off a mortgage in retirement2
Desire to stay put: 4 in 5 Australians aged 65+ aren’t willing to downsize to pass wealth to their children, yet nearly half of those aged 50+ would consider releasing home equity if they could remain in their home3
Wealth unspent: 90% of all intergenerational wealth transferral occurs through death inheritance4, indicating a lack of retiree spending and financial confidence
Loan specifications:
Interest-only period: customers may apply for up to a 10-year interest-only period without the need for credit re-assessment after the initial 5 years.
Serviceability assessment: Borrowers' capacity to repay will be evaluated based on the remaining principal and interest term after the interest-only period.
Exit strategy: Borrowers approaching retirement, already retired and / or aged 60+ are required to meet the Bank’s exit strategy policy.
Maximum loan-to-value ratio (LVR):
~ A maximum LVR of 80% applies to Interest-only products.
~ To safeguard owner-occupiers during market fluctuations, where interest-only terms of 6-10 years are requested and the interest-only repayments portion of the borrowing exceed 50% of total owner-occupied borrowing, the maximum LVR is capped at 70%.
~ For Investment Interest-Only loans, the maximum LVR remains at 80% regardless of interest-only term.
Eligible products:
| Owner Occupied (interest-only) | Investment (interest-only) |
| Professional Package – Variable | Professional Package – Variable |
| Professional Package – 1 year fixed | Professional Package – 1 year fixed |
| Professional Package – 2 years fixed | Professional Package – 2 years fixed |
| Professional Package – 3 years fixed | Professional Package – 3 years fixed |
| Professional Package – 5 years fixed | Professional Package – 5 years fixed |
Note: Interest-only terms are not required to match fixed-rate terms; however, the interest-only period may not be less than the fixed term.
For more information about our interest-only loan see here.
[1] Retirement Income Review, 2020
[2] AMP-commissioned
research, Dynata, 2023
[3] AMP-commissioned
research, Dynata, 2024
[4] Wealth
Transfers and Their Economic Effects, Productivity Commission, 2021
The product issuer and credit provider is AMP Bank Limited ABN 15 081 596 009, AFSL and Australian credit licence 234517