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From a brokers perspective they're usually only used when borrower is close to hitting a borrowing capacity wall and/or need to use a lender that doesn't credit score and has a decent DUA (could be any number of reasons why this could be the case).
Their cashout policy up to 90% is good - wouldn't use them for deals above 90% because they defer to genworth.
All in all - not a bad lender but usually used later on when borrower has a few IPs under the belt.
Cheers
Jamie
You are right about the age policy Peter, ..... as you said as long as the purchase is for an investment property then they are fine.Makes sense. AMP might be on my short list under those circumstances.
Most lenders have an 'age' policy. AMP does as well, but they generally don't apply it to investment purchases.
Just over 3 years ago, my investment partner and myself refinanced all our loans to AMP. I kept the loans for 3 years and have moved two of them to ING to get a much better interest rate. I found them great to deal with. Good post loan customer service. The only issue I had was with their mortgage solicitor firm when their mortgage solicitor told me over the phone that the deal would not happen. I understand they are using another firm now. Overall, I was really happy with them and have only moved 2 loans due to a lower interest rate with ING.
AMP wanted to control the equity release along with the settlement
That's bizarre - never had that happen.
What was the LVR and purpose?
Cheers
Jamie
Yep. Long story short, just over 3 years ago all the loans were at an average interest rate of 9.5%. Today the ING loans are at 4.63% and the AMP is 5.2%. Will address the AMP next.That seems like a very odd thing to do - must have had some pretty specific circumstances to warrant that?
We have a few IP's, .... we are both over 55 and are probably getting close to borrowing capacity. Probably why the mortgage broker mentioned them.
Mystery
I was refinancing a loan from Westpac to AMP to access equity (88%) and at the same time purchasing an IP with AMP at 80%.
They wanted to control the equity release to pay for the IP settlement. The actual clause on the loan document:
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AMP are a niche lender for the reasons Jamie and Corey have described. Their servicing model and cash out policies are excellent. They have several other areas where they excel.
I have found they're fairly difficult to deal with as a lot of their systems and processes are fairly antiquated. Increases, variations, can be painful when compared to some lenders.
They certainly have their place, but you probably wouldn't choose them unless there's a specific reason.