To assist clients experiencing financial pressure resulting from the COVID-19 pandemic, we’ve provided eligible AMP Bank home loan clients with the option to pause their home loan repayments for up to three months, with the possibility to extend for a further three months. Although the option to request the repayment payment pause ended on 30 June 2020, we’re still committed to helping clients in financial difficulty.
If you’re experiencing financial difficulty, you can request financial hardship assistance and we’ll help you understand what’s possible as part of that process. Learn more about how we can help. You can email the team at AB_Credit_Services_Hardship@ampbanking.com.au or call us on 13 30 30.
You can also talk to a financial counsellor - for free financial counselling, call 1800 007 007 or visit the National Debt Helpline at ndh.org.au.
FAQs for clients on the repayment pause
It’s after 30 June 2020, can I still pause my home loan repayments?
Although the option to request the repayment payment pause ended on 30 June 2020, we’re still committed to helping clients in financial difficulty.
If you’re experiencing financial difficulty, you can request financial hardship assistance and we’ll help you understand what’s possible as part of that process. Learn more about how we can help. You can also email the team at AB_Credit_Services_Hardship@ampbanking.com.au or call us on 13 30 30.
How does the repayment pause work?
- If you're eligible you can pause your home loan repayments for three months initially, with the possibility to extend for a further three months, totalling up to 6 months.
- After a repayment pause, you're required to bring your account/s up-to-date over the remainder of the existing loan term. This will result in monthly repayments being adjusted to repay your loan within the remaining loan term (ie the amount required may be higher than your current repayments and you may incur a higher amount of interest over the life of the loan).
- If you are 30+ days in arrears (or have been 30+ days in arrears during the last 6 months), or have existing hardship arrangements in place then you're not eligible for the repayment pause offer.
How to check if you're ahead on repayments
- Log into My AMP app
- Under the Banking section find your loan account(s).
- If there's a positive balance called 'Redraw', then you're ahead on our repayments, by this amount.
What happens after the initial three month repayment pause?
We'll contact you as the end of your 3-month repayment pause approaches.
In most instances, we'll send you a letter to inform you that we'll automatically be extending the repayment pause for an additional three months. If you do not want to extend your repayment pause, please call AMP Bank to opt out on 13 30 30.
In some instances, we may call you as we need to better understand your financial circumstances prior to making any decision about extending your repayment pause.
How to access your available redraw
If you have extra funds in redraw, during your repayment pause our system will automatically deduct your minimum repayment from redraw funds until your redraw amount is $0.
If you require access to the funds you have in redraw and your repayments are being paused, please transfer these funds to a linked offset account or another bank account. Otherwise we’ll automatically deduct your minimum repayment from available redraw.
- You can access available redraw via My AMP on our website or your phone, or via your Visa Debit Card linked to selected home loans
- Select whether you want to transfer money between AMP Accounts, BPay (to pay bills including credit cards) or via the PayAnyone option to transfer funds to non-AMP accounts
- You can also use your linked Visa Debit Card to withdraw funds via ATMs, or make purchases via EFTPOS or online.
How to access your offset
- If you have additional funds in your offset account, you can transfer funds from the offset to your loan account to make monthly repayments including setting up an automatic transfer via My AMP. You can access available funds in your offset account via either My AMP on our website or your phone or via your Visa Debit Card linked to selected home loans
- Select whether you want to transfer money via My AMP using Transfers to transfer funds between AMP accounts, BPay (to pay bills including credit cards) or via the Pay Anyone option to transfer funds to non-AMP accounts
- You can also use your linked Visa Debit Card to withdraw funds via ATMs or make purchases via EFTPOS or online.
I'm an investor, how will taking a repayment pause interact with my tax deductions?
We cannot provide guidance on tax related queries. You should seek independent financial advice in relation to this.
If I pause my repayments, will it affect my credit rating?
We report repayment information to credit reporting bodies. During your repayment pause:
- If you were up to date with your repayments prior to the repayment pause, we will continue to report you as meeting your repayment obligations during the repayment pause.
- If you were not up to date with your repayments prior to the repayment pause we will suppress your repayment information, so not report any information about your repayments and leave a gap in your repayment history on your credit report. Please be aware that where there is a gap, that may be viewed negatively in future, including by other credit providers.
How will taking up the repayment pause offer affect my ability to obtain future lending with AMP Bank?
If you elect to take up a repayment pause, this action will not impact your ability to obtain future lending with AMP Bank. We will continue to follow current credit assessment processes. As with any credit assessment, we will need to obtain a clear explanation for what has happened/changed in relation to your circumstances so that the credit assessor can take that into consideration when reviewing your application. As an example, if you're in arrears at the time of application for future lending, this information could impact your approval outcome.
Will AMP amortise the principal and interest or just the interest?
If you elect to take a COVID-19 repayment pause, home loan repayments are put on hold for up to six months, with unpaid interest added to the loan balance. At the end of the repayment pause, your home loan repayments will be calculated to repay the balance in the remaining term.
If, at the end of the COVID-19 assistance period, you continue to have difficulty meeting your repayments, you can discuss your options with the AMP Client Enablement and Hardships team.
Can I stop my repayment pause early?
Yes, you can. Please call 13 30 30 if you wish to stop the repayment pause.
What will happen if I stop my repayment pause?
Your home loan repayments will be recalculated and you will be required to repay the balance in the remaining term. This will result in your monthly payments being adjusted. We’ll notify you of the start date of the new repayment amount.
The new amount may be higher than your current repayments and may incur a higher amount of interest over the life of the loan.
What will happen if my repayment pause is extended?
During any extension of your repayment pause, interest will continue to be added to your loan balance. At the end of your extended repayment pause, your home loan repayments will be recalculated to repay the balance in the remaining term.
This means that loan repayments will be higher for the remainder of your loan term. You may pay a higher amount of interest over the life of the loan
What will happen at the end of the six months?
We’ll contact you to inform you of the end of the repayment pause and notify you of your new loan repayment details.
Who can I talk to for more information about what is best for me?
Please seek independent financial advice from relevant qualified financial professional such as a financial planner, financial adviser, broker.
If you’re experiencing financial hardship, you can also talk to a financial counsellor. For free financial counselling, call 1800 007 007 or visit the National Debt Helpline.
We're here to help
You can reach us on 13 30 30 Mon - Fri: 8am - 8pm & Sat & Sun 9am - 5pm (Sydney time) or by logging into My AMP.
The product issuer and credit provider is AMP Bank Limited ABN 15 081 596 009, AFSL and Australian credit licence 234517.
It’s important to consider your circumstances and read the relevant Product Disclosure Statement or Terms and Conditions before deciding what’s right for you. This information hasn’t taken your circumstances into account. Information including interest rates is subject to change without notice.
Any application is subject to AMP Bank’s approval. Terms and conditions apply and are available at amp.com.au/bankterms or 13 30 30. Fees and charges may be payable.
This information is provided by AMP Bank Limited. Read our Financial Services Guide available at amp.com.au/fsg 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.
AMP Bank is a member of the Australian Banking Association (ABA) and is committed to the standards in the Banking Code of Practice.