AMP Master limits
The Master Limit feature is an overall lending limit that is available for a borrower’s financing needs, now and in the future.
It can provide flexibility to borrowers to restructure their debts between deductible and non-deductible debt, for either 5 or 10 years.
The Master Limit (up to a maximum of 80% LVR or the applicant’s borrowing capacity) may be approved when the applicant applies for a loan and can consist of up to 10 splits or ‘sub-accounts’ of which the combined total credit limits must always equal the Master Limit.
Benefits for borrowers –
· The borrower controls the mix of splits under the umbrella of the Master Limit (total of sub-account credit limits must always equal the Master Limit amount). –
· Flexibility to restructure sub-accounts for free as often as required for the term selected (maximum of 10 splits), to meet current and future needs (sub-account limit re-balancing only): –open new splits, –switch products, –rearrange loan limits, without completing a full application or property re-valuations provided the total of sub-account credit limits remain equal to approved Master Limit amount. –
· Simple process to apply for a Master Limit or to restructure/re-balance sub-accounts under a Master Limit.
· Line of credit (LOC) must be the primary sub-account (minimum $10K) and will be used to take up any remaining equity to ensure total sub-account credit limits always equal the Master Limit.
· One-off upfront $399 Master Limit application fee at the time of the loan application with no further fees for re-arranging sub-accounts.
· Available with most home loan products.
· No annual review.
· Can assist a borrower’s investment strategy to build assets and future wealth (eg investing in shares).
Q&A
Q Can a customer change limits and create new sub-accounts/splits within a Master Limit? How is this done?
A Yes, by completing and returning the Master Limit Restructure Request form, available online at amp.com.au/distributor or by calling us to request the form be emailed. Restructure requests can only be processed by AMP Bank on receipt of the form signed by all borrowers (and guarantors, if applicable). Clear and legible scanned forms, via email, are acceptable. Any changes that include an Interest Only loan sub-account may need to be accompanied by up to date financial information to support your application..
Q Can I keep my Master Limit if I add/change/ discharge a security property?
A Yes. However, depending on the loan variation request, an AMP Bank Home Loan application form, supporting documentation and credit assessment may be required. We will advise you at the time of the request if this information is required.
Q Can a single Master Limit be applied across two separate borrowing entities. For example, can a loan in a company name and another loan in the directors’ personal names share a single Master Limit?
A No. Separate Master Limits must be established for the company and the individuals’ loans.
