40-year investor loan with 10 years of IO launches

Designed for investment borrowers with a maximum loan-to-value ratio (LVR) of 80 per cent, the offering applies to loan sizes of $100,000 or more. Eligible customers can lock in IO terms ranging between 6 and 10 years.

Product overview

• Interest-only rates:

  • 60 per cent LVR: Starts from 6.54 per cent p.a. (6.85 per cent comparison)

  • 80 per cent LVR: Starts from 6.59 per cent p.a. (6.88 per cent comparison)

• Principal and interest (P&I) rates: Fixed at 6.39 per cent p.a. (6.80 per cent comparison) across all LVR tiers up to 80 per cent.

• Loan features: Full offset accounts and redraw facilities are available.

• Underwriting and serviceability: Serviceability is evaluated on a standard maximum 30-year principal and interest (P&I) schedule, and applicant exit strategies will be thoroughly assessed.

Why launch it?

The product launch comes as investors recalibrate their cash flow management in response to cost-of-living constraints and federal tax reform adjustments surrounding negative gearing and capital gains tax (CGT).

By offering up to a decade of IO repayments alongside a longer amortisation runway, the bank aims to help asset-rich investors build portfolio resilience and leverage existing equity without triggering refinancing hurdles down the line.

Speaking to The Adviser, Michael Christofides, AMP Bank's director of lending and everyday banking, said: “This product has been in pipeline since earlier this year and it aligns to our overarching strategy. The bank, for some time, has been pivoting more towards helping customers create wealth through property. That's been very much our value proposition, and we've been orienting towards investors and also to customers who are nearing their retirement as part of that value proposition.

“We have, of course, considered what's been coming out from the budget, and cash flow pressures on investors have been building as a result of higher interest rates, which is a real pinch point for brokers and their clients as they look for solutions to enable their clients to get some certainty in the investment space.

“So we have been considering what our customers are saying and what our brokers are asking for, which is really that investors are looking for certainty, and they're looking for cash flow, and this solution meets both of those needs.”

He added that broker feedback played an important role in shaping the new offering.

"Brokers have been telling us that more investors are looking for ways to improve cash flow and strengthen their holding power, particularly as lending, tax and economic conditions evolve," Christofides said.

"Equity Flex was developed with those conversations in mind. Brokers wanted greater flexibility for eligible investors with strong equity positions who may be asset rich but increasingly conscious of cash flow,” he said.

"This product gives brokers another option to help clients navigate changing circumstances while maintaining a long-term investment strategy. It's about providing flexibility and choice, backed by responsible lending standards."

Sean O’Malley, group executive of AMP Bank, said: "Property investing has always had a long-term focus, but the budget changes and ongoing cost of living pressures have put an even greater premium on cash flow management.

"For many investors, the question is no longer just whether a property is a good investment. It's whether they have the flexibility and financial capacity to hold that investment and maintain their strategy through changing market conditions and evolving tax settings. This includes new investors no longer having access to negative gearing benefits."

"Equity Flex gives eligible investors more options. A longer loan term and extended interest-only period can help improve cash flow flexibility, providing more breathing room and supporting long-term holding strategies."

The lender noted that while Equity Flex is currently tailored strictly for the real estate investor market, the bank may consider expanding the model to owner-occupier borrowers in the future.

AMP Bank has been shifting its lending priorities in recent months to focus on investors and borrowers nearing retirement. Indeed, the bank saw significant activity from the investor segment in 2025, as it prioritised product innovation for investor clients.

By the end of 2025, investors accounted for 39 per cent of the bank's overall portfolio, while owner-occupied loans made up approximately 60 per cent.

AMP Bank also recently launched 10-year interest-only loan with no midterm reassessment for both owner-occupiers and investors.

Similar to Equity Flex, the loan provides eligible investors and owner-occupiers – including self-employed borrowers, retirees, and those on the cusp of retirement, if they can meet the bank’s exit strategy policy – with the same loan and credit assessment for the full decade in a bid to give them “greater certainty and stability" and enable them to free up cash flow.