AMP Bank launches Australia’s first 10-year interest-only home loan with no reassessment

AMP Bank has today launched a 10-year interest-only home loan with no mid-term reassessment, providing customers with more choice, long-term financial flexibility and greater control over their cashflow.

The new loan is now available to eligible borrowers, including retirees, pre-retirees, investors, and owner-occupiers.

The offer seeks to address the changing needs of consumers, especially retirees and pre-retirees who are seeking additional cashflow for one off large expenses, or enhance their quality of life in retirement.

Michael Christofides, Director of Lending & Everyday Banking, AMP Bank, said: “In the past 20 years, the number of Australians aged 55 to 64 who own their homes outright has significantly decreased. Consequently, more people are carrying debt into retirement – a trend set to continue. “While paying off a mortgage early is often advisable, maintaining flexibility and unlocking property equity can be beneficial, especially in the early years of retirement when many underspend out of fear of outliving their savings. “For some retirees, the reality is that increasing equity in their property offers no felt benefit; instead, they could use additional cashflow to enhance their quality of life. “Our new interest-only loan is a simple solution designed to provide this optionality and financial flexibility for retirees and pre-retirees.”