Variable rate changes

AMP Bank Variable home loans

AMP Bank is making changes to its variable lending rates for new and existing owner occupiers and investors.  

These changes will be effective 8 March 2019 for new business and 11 March 2019 for existing business.

New and existing business Change
Owner occupied principal and interest Increasing by 0.15% pa
Owner occupied interest only Increasing by 0.15% pa
Investment principal and interest Increasing by 0.15% pa
Investment interest only Increasing by 0.15% pa

 

We’re managing our loan portfolio in a very active market and decisions on rates are never taken lightly.

The change is driven by an increase in costs.

 

Reference Rate Name Current Reference Rate New Reference Rate
Standard Reference Rate 5.28% pa 5.43% pa
Standard Reference Rate Interest Only 5.75% pa 5.90% pa
Standard Reference Rate Investment 5.96% pa 6.11% pa
Standard Reference Rate Interest Only Investment 6.32% pa 6.47% pa
Basic Reference Rate 4.93% pa 5.08% pa
Basic Reference Rate Interest Only 5.10% pa 5.25% pa
Basic Reference Rate Investment 5.97% pa 6.12% pa
Basic Reference Rate Interest Only Investment 6.02% pa 6.17% pa
SMSF Reference Rate 6.62% pa 6.77% pa
SMSF Reference Rate Interest Only 6.67% pa 6.82% pa
Line of Credit Reference Rate 5.48% pa 5.63% pa
Line of Credit Reference Rate Interest Only 5.95% pa 6.10% pa
Line of Credit Reference Rate Investment 6.16% pa 6.31% pa
Line of Credit Reference Rate Interest Only Investment 6.52% pa 6.67% pa

We recognise customers may be seeking certainty in a changing market so we’re also announcing some competitive fixed rates.

New fixed lending rates for owner occupiers and investors:

  • 3.99% pa (comparison rate1 4.43% pa) for 3 year Basic Package investment principal and interest
  • 3.99% pa (comparison rate1 5.30% pa) for 3 year Professional Package investment principal and interest
  • 4.06% pa (comparison rate1 4.71% pa) for 5 year Basic Package investment principal and interest
  • 4.06% pa (comparison rate1 4.23% pa) for 5 year Professional Package investment principal and interest

AMP Bank’s highly competitive 2 year Professional Package fixed rate for owner occupied principal and interest customers of 3.75% p.a. (comparison rate1 4.87% pa) will also continue to be offered.

1 The comparison rate is calculated for a secured loan on a loan amount of $150,000 over a 25-year term. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Comparison rates for variable interest only loans (except construction loans) are based on an initial 5 year interest only period and a subsequent 20 year principal and interest period. Comparison rates for construction loans are based on an initial 1 year interest only period with interest payable at the construction rate and a subsequent 24 year principal and interest period with interest payable at the Classic variable rate. Comparison rates for fixed interest only loans are based on an initial interest only period equal to the nominated fixed period and the remaining period (to 25 years) principal and interest at the equivalent product variable rate. 

Call us on 13 30 30 from 8.00am to 8.00 pm (Sydney time) Monday to Friday, 9.00am to 5.00pm (Sydney time) Saturday and Sunday, or email us at info@ampbanking.com.au.

These changes are effective 8 March 2019 for new business and 11 March 2019 for existing business.

Repayment Changes

Your new repayment amount will become effective from your next scheduled repayment date after Monday 29 April 2019.

The changes to the variable interest rates are being published in The Australian on Monday 11 March 2019.

We will also send a letter to customers with an impacted account disclosing your new minimum monthly repayment and your new 'actual' repayment. You should receive your letter the week commencing Monday 25 March 2019.

The new 'actual' repayment details the frequency and amount that will be debited from your account based on your instructions (for example, the new minimum monthly repayment may be $455.20 and you may have advised that you want to pay an additional $50 in all instances each month, thus your new 'actual' repayment will be $505.20 each month.

You should receive your letter in the week commencing Monday 25 March 2019.

This letter will include details of your new interest rate and new repayment amount.

You can use our loan repayment calculator to get an estimate of what your repayments will be.

The changed repayment amount will be shown on your next statement.

You can also log into My AMP from Monday 11 March 2019 to find out what your minimum repayment amount is.

What you need to do

You'll need to update your repayments as outlined:

  • Direct debit - If you've asked us to take your repayments by direct debit, you don't need to do anything. We'll automatically adjust this to the new repayment amount. Please make sure your account has sufficient funds to make the new repayments. If you want to keep your repayments the same as they are today, contact us on 13 30 30.
  • Deduction from your salary - You'll need to contact your payroll office to update your salary deduction amount before your next repayment date.
  • Periodic payment from another bank - please contact that bank to update your payment amount before your next repayment date.

If you make fortnightly repayments, you'll pay half of the minimum monthly repayment each fortnight. If you've asked to make weekly repayments, you'll pay a quarter of the minimum monthly repayment each week.

Also, if you're making an additional amount (for instance, and extra $50 a fortnight) by direct debit, call us if you want to amend this amount.

If repayments are made weekly or fortnightly on Interest Only Variable Payment loans

If your loan product allows weekly or fortnightly repayment schedules, estimating weekly/fortnightly repayment amounts should allow for a 33 day month, since if the last day of the month occurs on a Saturday, interest will not be charged, and repayment will not be taken until the Monday after (meaning the interest charged will be for a total of 33 days).

So to estimate weekly and fortnightly repayments use the following formulae:

Weekly repayment = Loan Amount x (Interest rate/365) x (33/4)

Fortnightly repayment = Loan Amount x (Interest rate/365) x (33/2)

Once you have estimated the decreased repayments on your Interest Only Variable Payment loan, you must take action to change any Direct Debit in place with either ourselves or another institution if you wish to reduce your repayment amount.

Important information

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It’s important to consider your particular circumstances and read the relevant Terms and Conditions before deciding what’s right for you. This information hasn’t taken your personal circumstances into account.

This information is provided by AMP Life Limited. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you

All information on this website is subject to change without notice. The credit provider and product issuer of AMP Bank products is AMP Bank Limited Australian Credit Licence 234517.