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AMP Bank Serviceability Check

As part of the AMP Bank e-lodgement solution, you can check Serviceability directly from your Aggregator CRM

Kate Gubbins avatar
Written by Kate Gubbins
Updated over a month ago

The AMP Bank e-lodgement solution has a second 'journey' - the Serviceability Journey, which:

  • is a shorter, faster Loanapp that gives you a Serviceability outcome. It replaces the AMP Bank Excel Serviceability Calculator

  • is able to be launched from your aggregator CRM, like the full e-lodgement journey - so it starts with the data in your CRM like Loanapp does.

  • is the same serviceability engine as both Loanapp and AMP Assessor - whatever result you get will be the same when you get to Loanapp, and when your Loanapp gets to the assessor (with the same data)

  • is able to 'promote' to the full e-lodgement journey - ie if you do a Serviceability Check, you can then 'promote' this to the full lodgement and submit your deal

How do I start a Serviceability Check?

Creating a Serviceability Check record is the same as creating a Loanapp record. You will be working on your application opportunity in your CRM, get to the lodgement button to launch Loanapp. When you launch, you will get a popup, asking you which record type to create. If you are wanting to check Serviceability, select the option "Start new Serviceability Check":

This will take the data you have in your CRM, and populate it into a new Serviceability Check record in Loanapp:

The Serviceability Check record is basically a cut-down version of Loanapp. You will see that there is way less data fields throughout....it's configured to capture just what is needed to get an accurate serviceability outcome. Key items to note on the Setup screen are:

  1. You will see that there are fewer sections in the Serviceability Journey (eg no compliance section); as they are not needed for serviceability

  2. The Unique Reference number that this record will have will match the reference number of your CRM opportunity

  3. The Loan Title is an optional item - but its good to give it one that you will be able to search on (recognise the application). Note that this will also be the title in your full application - so call it something that makes sense for both - eg Smith Refinance - 12 Brown St

  4. In the top right, you will have a toggle that allows you to convert the serviceability journey to a full Loanapp submission.

Quick run-through of the Serviceability Journey.

Applicants Page

After you have established your record, you can click through to the Applicant's Page. Here you will need to add Household detail, as this is important for HEM calculations - but otherwise there is nothing more needed:

Financial Position

The Financial Position page you will find is very similar to Loanapp, as this is the key detail for serviceability - but you will find each of the records requiring less data than in the full Loanapp.

The sections of Assets, Liabilities, Income and Expenses will have been populated by your CRM data - check all the records and add anything else required.

Loan

The Loan screen captures the detail about your security property and Loan including amount and rate which is important for serviceability:

Serviceability

The final page is the Serviceability outcome which lists a set of metrics for you to review:

Generate a printed Serviceability outcome

You are able to generate a printed output of your Serviceability record by clicking the "Download" button in the Serviceability section:

This will download a copy of your Serviceability outcome that you will be able to save in your records.

Scenarios

🤩 The AMP Bank Serviceability Journey has a great feature called Scenarios. This allows you to easily make changes (eg remove a credit card, add some income, change the loan amount) and see how the serviceability is affected. You can create up to 10 scenarios for your Serviceability Check.

For more on how to work with Scenarios, click here.

Definition of AMP Bank Serviceability metrics

Following is more detail for each of the metrics shown on the AMP Bank serviceability calculator:

Metric

Detail

Net Monthly Surplus.

Calculates the surplus income your applicants will have, after all expenses, commitments and the new loan (with buffer)

Generally, this must be > $0, however where you have a tight DTI (between 6 and 8), the NMS will need to be higher (check current policy)

Loan to Valuation Ratio.

The value of your loan(s) as a percentage to the value of your security property(ies).

Debt to Income Ratio.

DTI compares the recurring monthly debt repayments against the gross monthly income of your applicants; and expresses it as a percentage. A lower DTI is better.

Below 6 is acceptable for AMP Bank; and between 6-8 is acceptable if other metrics are strong. Above 8 is generally not acceptable.

Funds Position.

Will give you an understanding of what 'positive funds' are derived from the application eg:

  • the requested loan amount

  • any deposits or contributions

MBC NMS.

Shows the maximum monthly repayments your applications could make, based on your inputs

Max Loan (LVR)

Gives you an estimate of the Max Loan you could apply for, based on allowable LVRs

Max Loan DTI (<8)

Gives you an estimate of the Max Loan you could apply for, if your applicant(s) have a DTI less than 8

Loan to Income Ratio

Similar to DTI, the LTI compares the recurring monthly debt repayments of the new loan, against the gross monthly income of your applicants.

Net Disposable Income

Is the same as NMS - calculates the amount of income applicants have after paying all monthly expenses and commitments (including the new loan)

Net Adjusted Income

This is the total applicant income used in the serviceability calculation - after all adjustments like negative gearing.

Existing Commitments

Is the total monthly debt commitments your applicants currently have (before the new loan)

Net Expenses (HEM)

The listed expenses is the calculated HEM for your applicant(s) and is used in serviceability.

New Loan Repayments

This amount will be the benchmark repayments for the new loan - which will be the actual interest rate + an interest rate buffer (check current policy).

Converting your Serviceability Check to the full Loanapp

When you have finalised your Serviceability Check, you are able to convert your record to the full Loanapp for finalising and submission.

When you convert a Serviceability check, the interface will update to be the full Loanapp interface - and all your data will be transferred to the new interface.

This allows you to essentially continue on to the full lodgement with the same record. 🤩

⚠️ Note that once you convert, you cannot go backwards (ie can't turn a Loanapp back into a Serviceability record). This shouldn't matter...just good to know.

When you are ready to convert, you are able to click on the control in the top right corner, and click "Switch to Loan Application":

This will then convert your record to the full Loanapp:

Which will be:

  • all the sections of the full application workflow

  • the same Unique reference (basically, its still the same record, just a different interface)

  • the same applicants, and all the same data as your serviceability check

In fact, if you went straight to Serviceability in Loanapp, it will be the same outcome as you had in the Serviceability journey 🤩

You are now able to complete the full Loanapp (including all the great digital services) and submit your application.

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