Bank launches ‘mortgage broking financing’ offering

The finance is secured against the broker's client base/trail book and is offered on a maximum five-year term (but amortised over a 10-15 year profile).

AMP Bank has said that finance will be assessed on a case-by-case basis, but expects target rates to be between 7 per cent to 7.5 per cent.

According to the bank, the loans provide “competitive credit policies” that support a range of growth scenarios including mortgage broker mergers, acquisitions, equity buy-ins, and investments. 

The offering has been developed with aggregators to “ensure the offer will deliver on the needs of brokers”. Agreements are currently being made with “the largest aggregators” for the offering, however, it is believed that AMP is aiming to have relationships with all aggregators in the medium term.

Speaking of the new lending launch, AMP Bank said the mortgage broking finance builds on the bank’s experience in, and commitment to, the third-party channel, particularly given its importance to driving the bank’s strategic growth agenda.

It added that the finance complements the “education, counsel and strategies for brokers and adviser businesses” provided by AMP Bank’s relationship managers and business development team.

Sean O'Malley, AMP Bank group executive, commented: “The mortgage broker profession continues to grow and play an important role in supporting Australians realising their home ownership aspirations.

“There is an important role AMP Bank can play to support brokers in growing their businesses. This includes acquisition, succession planning, or other investment opportunities.

“We are proud of our longstanding commitment to brokers, and that we’re able to continue to back the next phase of their businesses.

“Providing mortgage broking finance strengthens our offer in the third-party channel and supports our strategic agenda to grow AMP Bank.”

Paul Herbert, the bank’s head of intermediary distribution and governance, added: “AMP Bank has strong experience partnering with brokers and advisers, and close relationships with aggregators and their distribution network.

“Mortgage broking finance is a natural fit for the bank within our existing expertise, and further demonstrates our commitment to brokers.

“Any brokers interested in our offer should speak to their AMP Bank business development manager or their aggregator to learn more.”

The move to offer mortgage broking finance comes amid a range of updates provided by the bank to the third-party channel, including self-service capability and support for brokers and advisers, along with increasingly digitising and automating the lending experience across its channels. 

[Related: AMP rolls out fast refinancing solution for brokers]