First bank to offer a40-year loan with 10 years interest only
Loan provides investors with greater flexibility as property tax changes set to reshape the investment landscape
AMP Bank has launched Equity Flex, a new investment property loan offering borrowers a term of up to 40 years and up to 10 years no-reassessment interest-only, as investors consider how they manage cashflow following the Federal Budget's changes to negative gearing and capital gains tax, and ongoing cost of living pressures.
The Budget changes are creating a divide in the property market, with existing investors retaining current tax arrangements while future buyers of established properties face tighter rules from 1 July 2027. As investors consider the long-term impact of the changes, cashflow management, repayment flexibility, greater certainty and the ability to hold investment properties through changing market conditions are expected to become increasingly important factors in investment decisions.
According to the RBA, Australia has around 2.3 million individual housing investors, with around 70 per cent owning a single investment property. ABS data also highlights the scale of the market, with investors taking out $41.5 billion in new dwelling loans and more than $36 billion in refinancing during the March quarter 2026.
Key Benefits:
- Greater cashflow flexibility through loan terms of up to 40 years and up to 10 yearsinterest-only.
- Increased capacity for investors to leverage existing equity and the 10-year interest only feature for other potential investment opportunities.
- Increased ability to manage different market conditions and changing costs, and hold property investments over the long term.
- Greater certainty, with borrowers able to lock in an interest-only structure for up to 10 years without reassessment during that period.
Sean O’Malley, Group Executive AMP Bank, said the proposed Budget changes had sharpened the focus on how investors manage and hold property investments over the long term.
"Property investing has always had a long-term focus, but the Budget changes and ongoing cost of living pressures have put an even greater premium on cashflow management.
"For many investors, the question is no longer just whether a property is a good investment. It's whether they have the flexibility and financial capacity to hold that investment and maintain their strategy through changing market conditions and evolving tax settings. This includes new investors no longer having access to negative gearing benefits."
"Equity Flex gives eligible investors more options. A longer loan term and extended interest-only period can help improve cashflow flexibility, providing more breathing room and supporting long-term holding strategies."
Michael Christofides, AMP Bank Director Lending and Everyday Banking, said broker feedback played an important role in shaping the new offering.
"Brokers have been telling us that more investors are looking for ways to improve cashflow and strengthen their holding power, particularly as lending, tax and economicconditions evolve.
"Equity Flex was developed with those conversations in mind. Brokers wanted greater flexibility for eligible investors with strong equity positions who may be asset rich but increasingly conscious of cashflow.
"This product gives brokers another option to help clients navigate changing circumstances while maintaining a long-term investment strategy. It's about providing flexibility and choice, backed by responsible lending standards."
Loan features:
- Loan terms of up to 40 years
- 6–10 years interest-only repayment period
- No reassessment during the interest-only period
- Offset and redraw functionality available
- Maximum 80% LVR
- Serviceability assessed on a maximum 30-year P&I basis
Equity Flex is a new standalone offer in addition to AMP Bank's Professional Package 10-year Interest Only Loan, launched in 2025, which also includes offset, redraw and additional repayment flexibility. Equity Flex provides investors with greater long-term cashflow flexibility and certainty through a 40-year loan term.
The product issuer and credit provider is AMP Bank Limited ABN 15 081 596 009, AFSL and Australian credit licence 234517