AMP Bank allows you to set a 'Master Limit' for your applicants borrowing that allows flexible re-structuring of your applicant's loan accounts when required.
Your applicants can establish a Master Limit of up to 80% of their security property value, with up to 10 splits of varying purposes. You are able to re-structure your splits, switch products, rearrange loan limits - without having to complete a new loan application. For more detail on Master Limit click here.
This article shows you how to request the Master Limit feature in Loanapp as part of your submission.
Line of Credit must be the primary sub-account
The Master Limit must have a Line of Credit (minimum $10K) as the Primary sub-account in the application.
This will mean that on your main (or only) split, you need to select a LOC product.
For a LOC to appear in the products dropdown, you need to ensure you have selected:
Interest Type: Variable
Payment Type: Interest Only
And you must have selected an Interest Only reason
Ensure you tick the Master Limit feature
On the main (or only) split, you will need to ensure that you tick the Master Limit feature. If you do not tick this, the Master Limit will not be setup:
Splits must have a product from the same 'family' of products
If you ask for splits on your submission, the second split needs to have a product from the same 'family' of products. Eg if you select Professional Package for the LOC, then subsequent splits must also be Prof Pack products.
In the following screenshot, we have selected the Prof Pack LOC (establishing Master Limit) as the first split; and then the Prof Pack Variable IO (with offset) as the second split:
Are there extra fees on Master Limit products?
Yes, there is a once-off upfront fee of $399 to establish the Master Limit - but no further fees for/when re-arranging accounts at a later date.
You should add this fee into your Loanapp application. To do this go to the Fees section towards the bottom of the Loan page, and click Add in the "Paid on or before settlement" section:
If you then choose the LOC as the Linked product; and set Type of Application Fee, the Master Limit fee will then auto-populate:
The fee will then be set to be included in your application:
Master Limit Serviceability
Note that when you select the Master Limit, a slightly different set of serviceability logic is applied to your submission. If you note that serviceability is different than expected, it may be because of this.