A top-up application lets your existing AMP Bank customers borrow more against their current home loan - without changing the borrowers, property, or repayment frequency. This article covers the steps and information you'll need to submit a top-up in Loanapp.
1. Setting Up the Application (Setup Section)
When you create a new Loanapp record for a top-up, start on the Setup page. The most important step is to set Primary Lending Purpose to "Further Advance".
This is required for all top-up submissions.
Limit Increase (Top-Up) Attribute
Once you select "Further Advance", a new toggle Limit Increase (top-up) is displayed. Toggle this to YES and then the Main Application type is automatically set to Top-Up.
SMSF and Construction Restrictions:
When you toggle Limit Increase (top-up) to YES, the SMSF and Construction fields automatically lock to NO. Top-ups aren't available for these loan types.
Loan Amount
Enter the total mortgage amount after the top-up is applied - not just the top-up amount alone. For example: $300,000 (existing) + $120,000 (top-up) = $420,000 (total).
2. Applicants Page
Add your applicants and complete their details. Since these are existing AMP borrowers, you don't need to do a digital Verification of Identity.
You will still need to have your borrowers compete a digital consent.
3. Financial Position Page
Existing Property Record
In the applicant's Financial Position, add the property that secures the existing AMP mortgage. Set "To be used as security" to YES.
For every existing liability, complete the Interest Type field (Fixed or Variable). This is mandatory - the system uses it to determine which splits are eligible for a top-up.
4. Loan Information
Linked Liability
In Loan Information section, a new drop down field is introduced. This will display the existing liability added previously. Select the existing AMP home loan from the dropdown, then select the Method of Limit Increase
Interest Type Requirements:
The existing loan must be variable to "increase existing loan" and for "increase existing and create new loan split".
If the loan is fixed, you can only add a new split - you cannot increase the existing one.
Method of Limit Increase:
You can increase a customer's credit in three ways:
Increase Existing Loan:
Increases the borrowing amount on their existing liability. Only available for variable interest rate loans. You may have multiple existing liabilities, but you can only select one home loan to be increased per app. You won’t be able to increase multiple existing loans within the same application at this point in time.
Create New Loan Split
Adds a new loan split without changing the existing loan. Ideal for customers with fixed rate loans who need to borrow additional funds.To create multiple new splits, select "Multiple Splits". The existing loan becomes Split 1, with each new loan created as an additional split.
A maximum of 10 splits is allowed.
Increase Existing and Create New Loan Split
Does both - increases the existing loan and adds a new split in the same application. When this is selected, a new section called “Borrowing Splits” will be added. Your existing loan becomes split 1 and the new split you’re adding becomes split 2.
You can increase the limit of your existing loan by entering the amount on “Limit Increase” field. You can also add multiple purposes under the existing loan split.
Ensure the purpose amounts match the total amount for each split.
Fill out the product, discount, rate to borrower, loan features sections.
For your new loan split, add the split amount in the “limit increase” field. Ensure all mandatory fields are filled out.
Your new split will also include the same sections - product, discount, rate to borrower, loan features.
5. Data to be Validated
Loanapp automatically checks your submission against key rules: minimum amounts, maximum splits and offsets, LVR limits and restrictions on fixed-rate, SMSF and second-mortgage loans.
You will need to resolve any validation messages before continuing.
Existing Home Loans
You can add multiple existing liabilities. But you can only select one Home Loan to be topped up or split, per application. You cannot top-up or split multiple existing home loans in a single application.
Loan Term
All splits must have the same loan term. You cannot have different splits with different loan terms.
Multiple Splits
You can add multiple splits by checking the checkbox “multiple splits”. Your current loan becomes split one and the new split becomes split 2.
You can add up to 10 splits.
Minimum Split Amount
The minimum split amount is $10,000. You cannot create a split with a lower amount.
Total Borrowing Amount
For top-up loans, the total borrowing amount must be at least $10,000.
Top-Up Fee
A top-up fee of $299 will be applied when Essential product is selected. Refer to Home Loan Fees & Charges Guide to ensure correct fee is applied.
Second mortgage is not allowed for top-up.
Security property must have “First mortgage priority” in order for it to be eligible for top-ups.
6. Assessment Summary
Check the Assessment Summary in Loanapp to verify the top-up details are correct and clearly displayed.
This section becomes read-only once assessment begins.
