Offer gives investors a 40-year term and up to 10 years interest-only as Budget tax changes reshape cashflow planning
AMP Bank has entered Australia's 40-year mortgage market with the launch of Equity Flex, an investment property loan offering terms of up to 40 years and up to 10 years of no-reassessment interest-only repayments.
It places AMP Bank among a small group of lenders offering 40-year terms, including Great Southern Bank, MA Money, Liberty, Pepper Money and RACQ Bank.
The product arrives as investors weigh how they will manage cashflow following the Federal Budget's changes to negative gearing and capital gains tax (CGT) — the tax concessions that respectively let investors offset property losses against other income, and reduce tax paid on profit when an asset is sold.
Equity Flex sits alongside AMP Bank's existing Professional Package 10-year Interest Only Loan, launched in 2025, but extends the maximum loan term to 40 years. Key features include:
- Loan terms of up to 40 years
- Six to 10 years of interest-only repayments with no reassessment during that period
- Offset and redraw functionality
- Maximum 80% loan-to-value ratio (LVR) — the proportion of the property's value being borrowed
- Serviceability assessed on a maximum 30-year principal and interest (P&I) basis
Sean O'Malley (pictured, right), Group Executive AMP Bank, said the proposed Budget changes had sharpened the focus on how investors manage and hold property investments over the long term.
"Property investing has always had a long-term focus, but the Budget changes and ongoing cost of living pressures have put an even greater premium on cashflow management," O'Malley said.
"For many investors, the question is no longer just whether a property is a good investment. It's whether they have the flexibility and financial capacity to hold that investment and maintain their strategy through changing market conditions and evolving tax settings. This includes new investors no longer having access to negative gearing benefits."
"Equity Flex gives eligible investors more options. A longer loan term and extended interest-only period can help improve cashflow flexibility, providing more breathing room and supporting long-term holding strategies."
In AMP Bank's view, the Budget changes create a two-tier system: existing investors keep their current tax arrangements, while buyers of established properties face tighter rules from 1 July 2027.
According to the Reserve Bank of Australia (RBA), Australia has around 2.3 million individual housing investors, with about 70% owning a single investment property, while Australian Bureau of Statistics (ABS) data shows investors took out $41.5 billion in new dwelling loans and more than $36 billion in refinancing during the March quarter of 2026.
Broker feedback shapes offer
Michael Christofides (pictured, left), AMP Bank Director Lending and Everyday Banking, said broker feedback played an important role in shaping the new offering.
"Brokers have been telling us that more investors are looking for ways to improve cashflow and strengthen their holding power, particularly as lending, tax and economic conditions evolve," Christofides said.
"Equity Flex was developed with those conversations in mind. Brokers wanted greater flexibility for eligible investors with strong equity positions who may be asset rich but increasingly conscious of cashflow.
"This product gives brokers another option to help clients navigate changing circumstances while maintaining a long-term investment strategy. It's about providing flexibility and choice, backed by responsible lending standards."
