AMP Bank has launched its first loan product for the self-managed super fund (SMSF) market – AMP SuperEdge – with a competitive variable interest rate of 6.70 per cent per annum now available.
Developed to meet increased demand in SMSF lending, AMP SuperEdge enables trustees to borrow within their SMSF to buy a residential investment property or refinance an existing SMSF loan. The loan is repaid by the property’s rental income and contributions paid into the fund.
AMP Bank Chief Operating Officer Rob Slocombe said a growing number of SMSF trustees are looking to add bricks and mortar investments to their SMSF and AMP is uniquely positioned to offer this type of loan.
“People want diversity in their SMSF investments. There was a strong level of interest in AMP SuperEdge in a pre-launch trial as it helps trustees add property to their fund using an attractively priced loan,” Mr Slocombe said.
“The loan will be offered through AMP’s network of accredited mortgage brokers and financial planners as well as direct to customers. It’s got many of the same features as a regular home loan so it will feel very familiar to customers, planners and brokers.”
The SMSF sector is the largest and fastest growing superannuation sector in Australia.
“Now is the right time for AMP to launch this product. AMP has a strong focus on SMSF within the business and good relationships with financial planners and brokers.
“AMP Bank’s sales team has also undergone SMSF training to ensure the right expertise in this relatively new sector,” Mr Slocombe added.
AMP SuperEdge features:
- Available to SMSFs with individual trustees or a company as a trustee – loan policies and features are identical regardless of SMSF structure.
- Link an offset account that may act as the SMSF’s cash management account, with super contributions and the property’s rental income paid into the offset account, therefore reducing the interest due on the loan.
- Maximum Loan to Value Ratio of 80 per cent.
- Choice of Principal and Interest or Interest Only repayments.
- Choice of a combination of fixed and variable interest rates, with the first split free.
- 100 per cent mortgage offset account available with zero opening balance.
- Unlimited free transactions include rediATM/eftpos in Australia, BankNet, BankPhone, direct debit, direct credit, BPAY© and cheque book.
- No redraw.
This year, AMP increased its focus on the SMSF market, establishing a new business unit, AMP SMSF, and acquiring SMSF administrator Cavendish making AMP the market leader in professional SMSF administration.
AMP SuperEdge is not available in conjunction with any other AMP Bank product type.
Brokers and aligned and independent financial planners need to be accredited specifically to submit applications on behalf of clients for this product.
Standard commission rates will be available to mortgage brokers and financial planners that arrange the product on behalf of a customer.