AMP Bank launches retirement-friendly home loan | Australian Markets
AMP Bank has unveiled its latest home loan product as a retiree-friendly and versatile option, offering elevated control over cashflow and the chance to improve high quality of life in retirement.
The 10-year interest-only home loan doesn’t require a credit re-assessment midway by way of the time period in comparison with different merchandise, and is the primary in Australia, in keeping with the bank, to take action.
The bank stated in a assertion that the loan’s eligibility extends to retirees, pre-retirees, self-employed people, traders, ‘rent-vestors’, and each new and current owner-occupiers.
“In the past 20 years, the number of Australians aged 55 to 64 who own their homes outright has significantly decreased. Consequently, more people are carrying debt into retirement – a trend set to continue,” Michael Christofides, Director of Lending & Everyday Banking at AMP Bank, stated.
“While paying off a mortgage early is commonly advisable, sustaining flexibility and unlocking property equity may be useful, particularly within the early years of retirement when many underspend out of concern of outliving their financial savings.
“For some retirees, the fact is that growing equity of their property provides no felt benefit; as a substitute, they might use extra cashflow to reinforce their high quality of life.
“Our new interest-only loan is a simple solution designed to provide this optionality and financial flexibility for retirees and pre-retirees.”
The product launch follows the release of a number of key datapoints cited by AMP Bank that counsel issues over home possession and debt in retirement trends have intensified, together with:
- Census information from 1991, 2006 and 2021 exhibits that home possession, for these aged between 25–39 years has decreased in every successive era
- 9 in 10 Australians over 50 consider they’ll nonetheless be paying off a mortgage in retirement
- 4 in 5 Australians aged 65+ aren’t prepared to downsize to move wealth to their kids, but almost half of these aged 50+ would contemplate releasing home equity if they might stay of their home
- 90% of all intergenerational wealth transferral happens by way of death inheritance, indicating a lack of retiree spending and financial confidence
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