AMP Banking Specials

AMP Banking yesterday announced several specials on their home loan products.

Until 31 March 1999, AMP Banking is cutting the fees on its MortgagePlus home equity loan and halving the application fee on its other term loans, although the one-year introductory fixed rate loan is excluded.

The current fees are $600 for application, $250 for split loan and $250 for additional security, all will be waived under this special, when a MortgagePlus loan is taken.

Although the one-year introductory fixed rate loan misses out on the application fee cuts, customers now have the option to make extra repayments, up to $10,000 pa, during the fixed rate period.

Generally fixed rate loans are highly inflexible when it comes to extra repayments. Typically a fixed rate means a fixed repayment.

By letting them make extra repayments over the first year AMP Banking is giving their customers the opportunity to make substantial savings over the life of the loan.

These initiatives are certainly not ground breaking in the home loan market, but when released at the same time provide a bonus for a large percentage of consumers who take out an AMP Banking loan, and in the case of the extra repayment option, some existing customers.