Second tier launches low cost home loan

by Ben Abbott21 Oct 2011

AMP Bank has unveiled a low cost home loan designed for customers wanting access to a simple product.

The AMP Essential Loan has a variable interest rate of 6.85%, has no ongoing fees, and settlement and establishment fees are being waived until 31 December this year as an introductory offer.

A statement from AMP said the rate is lower than the four major banks' basic variable rate home loans, making it among the most competitively priced products in the market.

AMP Bank chief operating officer Robert Slocombe said the new home loan was designed to meet a need for customers for a simple home loan at a low cost and competitive interest rate.

"The product is a great alternative to the major banks, especially for entry-level customers and people looking for a competitive basic low cost loan that still gives them the more popular home loan options."

Slocombe said the loan incorporates basic features customers demand - including free redraw - but dispenses with the features "many customers don't need or want". The loan has no offset account.

AMP Bank said it was offering the new product both direct and through its network of accredited mortgage brokers and financial planners. 

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