AMP Bank has launched Australia’s first 10-year interest-only owner-occupier home loan without reassessment for new borrowers, though existing customers face renewed evaluation requirements, signalling nuanced changes in interest-only lending practices.
AMP Bank has moved to give borrowers a longer interest-only window, but its own distributor material suggests the rules are not entirely as simple as “set and forget”. In May 2025, the bank said it had launched what it described as Australia’s first 10-year interest-only owner-occupier home loan without a mid-term reassessment, a feature pitched at borrowers who want steadier cash flow over a longer period, including retirees and people approaching retirement.
That promise of no reassessment during the term appears to apply to new loans, however. In distributor guidance, AMP says existing customers who want to extend an interest-only facility to the new 10-year maximum must still go through a full serviceability assessment. The same material also notes that any change involving an interest-only sub-account may need up-to-date financial information to support the application. In other words, the lender’s approach appears to depend on whether the borrower is taking out a new product or altering an existing one.
AMP’s broader home-loan material shows that the bank is positioning interest-only lending as a cash-flow management tool for both owner-occupiers and investors. Its equity flex loan and refinancing offers also promote extended interest-only terms, offset accounts and repayment flexibility, while the bank says eligibility remains subject to credit approval and standard borrowing criteria. The package is designed to appeal to borrowers who want more control over monthly commitments, but the distributor note suggests that any later change to the structure of the loan may still bring fresh checks.
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