AMP Bank has just rolled out a new investor loan called Equity Flex, and it’s a bit different from what’s currently on offer at most banks. The loan runs for 40 years and lets you lock in up to 10 years of interest-only repayments – with no reassessment partway through. It went live across AMP’s broker network on 30 July, after a few months of piloting with select brokers.
What Equity Flex Actually Offers
Most 30-year loans give you a short IO window before the bank checks back in on your finances. Equity Flex stretches the term out to 40 years and pairs it with an IO period of up to 10 years, and you don’t have to go through a reassessment during that stretch.
Here’s what the product looks like in practice:
- Loan term: 40 years
- Interest-only period: 6 to 10 years, your choice, no reassessment required
- Maximum LVR: 80%
- Minimum loan size: $100,000
- P&I rate: Fixed at 6.39% p.a.
- Extras: Full offset accounts and redraw
- Serviceability: Assessed on a standard 30-year P&I schedule, with your exit strategy checked closely
Why AMP Launched This Now
Timing-wise, this makes sense. Investors have spent the past year adjusting to cost-of-living pressure on one side and federal tax changes to negative gearing and CGT on the other. A decade of IO repayments plus a longer amortisation tail gives asset-rich investors room to breathe – more cash flow now, and access to existing equity without having to refinance to get it.
AMP’s director of lending and everyday banking, Michael Christofides, said the product had been in the pipeline since earlier this year and fits with where the bank wants to take its lending strategy.
Who This Actually Suits
This isn’t a loan for everyone chasing lower repayments. It works best for investors who:
- Sit at or under 80% LVR
- Want cash flow now rather than paying down the loan faster
- Have a real exit strategy for when P&I kicks in
- Would rather not deal with a reassessment mid-term
One thing worth keeping in mind: the balance doesn’t move during the IO years. None of your repayment touches the principal. So this suits someone playing the long game – not someone hoping to build equity quickly.
Not AMP’s First Attempt at This
AMP already tried something similar in May 2025, offering a 10-year IO loan to both investors and owner-occupiers. Equity Flex is the investor-only follow-up, now with the 40-year term attached.
Whether this is the right move depends entirely on your situation – your LVR, your exit plan, how you feel about tax reform changing the numbers on negative gearing. It’s not a product to jump into just because the headline rate looks appealing.
Want to know if Equity Flex – or something else – makes sense for your portfolio? Get in touch with our team.
