Bank announces sweeping mortgage changes

by Madison Utley01 May 2020

A non-major bank has announced it will be switching a significant portion of customers with "legacy home loans" over to contemporary products that have the same or lower interest rates and fees.

AMP Bank attributed its decision to the continued “push to simplify its products”.

“Never before has it been more important to reduce complexity," said AMP Bank managing director Rod Finch.

"This home loan simplification is about making it easier for our clients, as well as our brokers and advisers, to do business with us.

“This latest change follows previous simplification by the bank, including the removal and reduction of more than 40 special service and home loan fees, as well as the transition of clients to contemporary deposit accounts.”

According to Finch, the change will free up more time to spend on supporting clients and brokers alike, as well as allow the group to “provide a more focussed and competitive offering”.

“Importantly, clients will be accessing the benefits and features of a newer product, with about 80% of clients benefitting from a lower interest rate on at least one of their accounts, and no negative impact for the remaining,” he added.

AMP borrowers do not have to take action to be involved in the initiative, with the home loan product switches set to occur automatically.

The first round will include 3,000 customers with 5,500 accounts and go into effect on 31 May 2020, with additional rounds planned for the near future.