New product offers full decade of interest-only payments without mid-term reassessment
AMP Bank has launched a new interest-only mortgage product, offering a decade-long term without mid-way reassessment — a first for Australia’s retail banking sector.
The home loan, aimed at providing long-term financial flexibility, is available to a range of borrowers including eligible owner-occupiers, investors, retirees, and self-employed individuals. Unlike most interest-only mortgages that require borrowers to undergo reassessment after five years, AMP’s offering allows the full 10-year term to proceed without a mid-term credit review, offering greater certainty and reduced administrative requirements.
According to AMP Bank, the new product is a response to shifting borrower needs, especially among older Australians who are increasingly looking for ways to manage cashflow during retirement. The bank said the loan offers a simplified experience, supporting long-term planning while reducing the documentation and reviews typically required throughout the term.
For most borrowers, the maximum loan-to-value (LVR) is 80%. However, for owner-occupiers requesting interest-only terms of six to 10 years where interest-only repayments make up more than 50% of total borrowings, the LVR is limited to 70%. For investment loans, the 80% cap remains in place regardless of the interest-only duration. Applicants nearing or in retirement — particularly those aged 60 and above — are required to meet AMP Bank’s exit strategy policy as part of the credit assessment process.
We’re excited to announce a new 10-year interest-only home loan offer with no mid-term reassessment, providing customers with more choice, long-term financial flexibility and greater control over cashflow.
— AMP (@AMP_AU) May 4, 2025
Learn more: https://t.co/UV5IDmHI1r pic.twitter.com/m1cmJRmgmU
“In the past 20 years, the number of Australians aged 55 to 64 who own their homes outright has significantly decreased,” said Michael Christofides (pictured above), director of lending and everyday banking at AMP Bank. “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.”
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