6 November 2020
AMP Bank recognises that there are customers who entered our Repayment Pause Program that may not be able to return to full repayments during 2021. AMP Bank has therefore introduced a freeze on forced sales until 2022 to help those customers to get back onto their feet and to retain their home during this challenging period in their life.
FAQs for Freeze on Forced Sales for Repayment Pause Clients
What are we doing?
AMP Bank will not force sell the homes of any client that entered Repayment Pause on or after March 2020, who is unable to make their contractual minimum monthly repayment obligation during the remainder of 2020 and 2021.
This is only available to clients that:
- entered into the COVID-19 Repayment Pause
- were not in arrears on their Owner Occupied Loan at any time during the 12 month period prior to entering Repayment Pause
- have held their owner-occupied home loan with AMP Bank for at least 12 months prior to entering Repayment Pause
We have undertaken this initiative to provide our clients in Repayment Pause with peace of mind during a challenging period in their life, providing them with confidence they can remain in their home
How does it work?
AMP Bank will not, during the remainder of 2020 or 2021, commence the process to sell a client’s owner-occupied home where that client is unable to make loan repayments at the end of their Repayment Pause.
The client will need to ensure that they are able to be contacted by AMP Bank on a regular basis, at least monthly, to ensure that AMP Bank can continue to assess each clients financial position and discuss all the options that may be available to our clients.
You should contact AMP Bank before the end of your current Repayment Pause to discuss your financial position and all the options that may be available.
Am I eligible for this?
To be eligible for this assistance a client must meet all of the following:
- Owner Occupied Loans only
- Have been on COVID-19 Repayment Pause
- Loan was not in arrears in the 12-month period prior to entering Repayment Pause
- Loan has been with AMP Bank for at least 12 months prior to entering Repayment Pause
Who is not eligible for assistance?
Clients not eligible for this assistance:
- Investment Loans
- Clients who are not in regular contact with us, at least monthly, to ensure that we can continue to assess each client’s financial position and continue to discuss all options available
- Clients who are were never on COVID-19 Repayment Pause
- Clients who were in arrears in the 12-month period prior to entering Repayment Pause
- Clients with owner occupied loans that were not with AMP Bank for 12 months prior to customers entering Repayment Pause
What if I’m not eligible?
AMP Bank has a number of support options available to our clients to help them. If you are experiencing financial hardship and would like assistance, please email AB_Credit_Services_Hardship@ampbanking.com.au or call us on 13 30 30 if you’d like to discuss your situation with us.
Will I be required to make repayments during the assistance period?
Yes, if you can afford to make a repayment, you should make at least a part payment on a monthly basis. It is in your best interest to contribute as much to your loan as possible to reduce the loan arrears and interest expense on your loan.
If you cannot afford to make a repayment, after discussions with AMP Bank to assess all your options, we will defer your repayments until such time as you can start to make a contribution. You must keep in regular contact with AMP Bank, at least monthly, so that we can continue to understand your financial position and assess all your options.
What will happen in 2022 if I can’t still commit to making repayments?
We will work with each client during the assistance period to continually assess a client’s financial position and discuss all options available to them in January 2022.
Will interest accrue on my owner-occupied loan during the assistance period?
Yes, interest will accrue on your loan during the assistance period. It is important that you try to contribute at least a part payment to your loan on a monthly basis to reduce the amount of interest that accrues and therefore minimise the increase in your loan balance over the period due to interest charged to your loan on a monthly basis.
Will my credit report be impacted if I take up this assistance?
During this assistance period 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. Where there is a gap, that may be viewed negatively in future, including by other credit providers.
Who can I talk to for more information?
Please contact us via email AB_Credit_Services_Hardship@ampbanking.com.au or call us on 13 30 30
FAQs for clients on the repayment pause
What happens after the repayment pause period ends?
Your repayments will automatically resume at the end of the pause period as planned.
When the repayment pause period ends, keep in mind you need to catch up on any missed repayments over the remainder of the loan term.
This means your monthly repayments will be adjusted and the amount you’re required to pay may be higher than your existing repayments.
You may also incur a higher amount of interest over the life of your loan.
Can I stop my repayment pause sooner?
Yes. Please call 13 30 30 if you wish to stop your repayment pause early.
What if I don’t think I can resume my repayments at the end of the pause period?
If you think you might experience some difficulty resuming your normal repayments, we’re here to help you navigate some options you may be eligible for.
Depending on your situation, some of the options you may be eligible for could include:
- restructuring your repayments
- extending the term of your loan
- applying for an additional deferral period, depending on your situation.
Keep in mind, during any extension of your repayment pause, interest will continue to be added to your loan balance.
This means that loan repayments will be higher for the remainder of your loan term and you may pay a higher amount of interest over the life of the loan.
I received a survey about AMP’s repayment pause. Is it legitimate?
Yes, it is a legitimate survey.
While we may ask you for feedback, please remember we will never ask you to confirm private information or passwords via email or text.
If you’re ever suspicious about a communication from AMP that you receive, call us on 13 30 30.
How can I check if I’m ahead on my home loan repayments?
- Log into My AMP
- Under the Banking section find your loan account(s)
- If there's a positive balance called 'Redraw', then you're ahead on your repayments by this amount.
What if I have money in my home loan redraw facility?
If you have extra funds in a redraw facility (which you may have attached to your home loan) during your repayment pause, our system will automatically deduct your minimum repayment from redraw funds until your redraw amount is $0.
To avoid this happening, you can transfer these funds to a linked offset account or another bank account.
- You can access available redraw funds via My AMP on our website or your phone, or via your Visa Debit Card linked to selected home loans
- You can then select whether you want to transfer money 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.
How can I access funds in my offset account?
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.
How will taking a repayment pause affect my tax deductions?
For any tax-related questions, please speak to a tax adviser.
If I pause my repayments, will it affect my credit rating?
If you were up to date with your repayments before the repayment pause, we’ll continue to report that you’re meeting repayment obligations during the repayment pause period.
If you weren’t up with your repayments, we won’t report anything and this will leave a gap in the repayment history on your credit report. Please be aware that any gap may be viewed negatively in future, including by other credit providers.
Visit CreditSmart to find out what a payment pause could mean for your credit health.
How will a repayment pause affect future loan options with AMP Bank?
The pause won’t affect your future lending options with AMP Bank.
We’ll continue to follow current credit assessment processes during an application. As with any credit assessment, we’ll need a clear explanation of any change in your circumstances so that the credit assessor can take that into consideration.
As an example, being in arrears at the time of application may affect your approval outcome.
We're here to help
Mon - Fri: 8am - 8pm & Sat & Sun 9am - 5pm (Sydney time)
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.