Australian Mortgage Options specialises in wealth building strategies, as well as helping you buy your first home and getting your home loan approved.
Australian Mortgage Options (AMO) has been awarded for helping thousands of Australians finance their homes and investment properties. AMO was established in 1998 by Robert Projeski, who built the company with the mission to help borrowers maximise their wealth by paying off their entire mortgage and minimising tax. AMO’s mission statement is ‘we’ll show you what the others don’t want you to know’.
What does the AMO Group do?
AMO offers a wide range of home loan products and investment property services to its clients in order to give them an opportunity to increase their wealth. You can speak with one of AMO’s experts and get information and guidelines on how to make an effective investment in your home or investment property.
AMO mortgage consultants follow a set of strategies to offer useful tax reduction tips which can improve your financial situation. AMO also offers insurance policies, such as income protection insurance, term life insurance, trauma insurance and total and permanent disability insurance in order to safeguard your money.
The company specialises in investments as well as standard home loans, construction loans, line of credit home loans, business loans, bad credit loans, non-conforming loans, no financial loans, investment property loans and future proof home loans.
Types of home loans offered by the AMO Group
AMO First Buyer home loan
As the name suggests, this loan is suitable for those who are planning to buy a home for the first time. However, there are certain elements that you need to consider when you purchase your first home, such as the facilities available in the area where you intend to buy a house, the features and price of the house, and the future prospects of the area where you’re looking to buy. When you are about to borrow money for purchasing a house, there are a few things that you need to remember, including your maximum borrowing limit, repayment amount, duration of the approval process, eligibility criteria and the costs associated with the loan.
The Future Proof home loan
The Future Proof home loan allows borrowers to switch from a fixed rate loan to a variable rate loan and vice versa to enjoy the lower rate of interest. This is more beneficial than a traditional split loan because you have a choice between the lower of the rates to be charged on your loan. It gives you peace of mind in terms of repayments as it protects you and your mortgage against the increase of future interest rates. You can safeguard your loan by protecting yourself against interest rate fluctuations in the market and you can enjoy lower repayments on your loan.
Revolution home loan
The Revolution Home Loan allows an offset account on either a variable or fixed rate loan. You can reduce the interest payable with the offset account because it gives you an opportunity to offset the interest charges against your savings. This is very useful for borrowers who have enough savings to pay off a part of their loan in order to reduce the overall value of their debt. AMO offset loans can be used for any worthwhile purpose and are suitable for owner-occupied or investment properties. Company borrowers, PAYG or the self-employed can apply for AMO offset loans. Repayments consist of principal and interest-only and you can pay via telephone transfer; internet transfer; direct salary; deposit payments; weekly, fortnightly or monthly direct debit; and periodical direct credit.
You can choose to make additional repayments if you have savings in order to reduce the total value of your loan. AMO offset loans also offer a redraw facility, phone and internet access, card access and loan split options.
Fixed home loan
Fixed home loans mean you’ll know exactly what your repayments will be throughout the fixed term. This loan is suitable for investors or owner occupiers and repayments are interest-only and principal and interest. Repayment methods can be direct salary, telephone transfer, internet transfer, periodical direct credit, fortnightly or monthly direct debit, deposit payments, and inward BPay. Applicants can be self employed or PAYG.
The benefits of the AMO Fixed home loan are that there is no annual or monthly fee, it allows you to make additional repayments, it has a redraw facility, you can get phone and internet access, it allows loan splits, a deposit book is provided, it gives you a line of credit and there is no switching fee subject to certain conditions.
Home Equity home loan
This is a loan which is secured by a second mortgage and allows homeowners to borrow against their equity stake in the home. It is basically a line of credit secured against your home. AMO home equity loans can be used for any purpose and applicant types include company borrowers, self employed or PAYG. You can make the repayments, consisting of principal and interest and interest-only, through periodical direct credit; weekly, fortnightly or monthly direct debit; deposit payments; direct salary; telephone transfers and internet transfers. AMO home equity loans offer loan splits, additional repayments, a redraw facility, card access and phone and internet access.
Moving Home bridging finance
The AMO bridging loan offers you an easy way to buy or build a new house before you sell your existing one. Rather than making two sets of repayments while you are in the process of selling your existing home, no repayments are required on the new home loan for the bridging period. The length of the bridging period depends on whether you are purchasing a new home or building it.
These types of loans allow you to increase the current home loan amount to buy a new home. You can choose to borrow fees like stamp duty and upfront costs on your new home and can also choose to borrow extra money to help with the repayments during the bridging finance period. You can pay off your home loan from the funds you receive after selling your current home and will eventually end up with the new loan only. The bridging part of the loan is during the period where you have a mortgage on both homes. It is important to consult an AMO mortgage specialist when you are planning to take out bridging finance because it has different rules and you can choose the options that best suit your needs.
Low Documentation loans
This loan type is suitable for self-employed borrowers who are unable to provide their complete financial details. It can be used for a number of different purposes, such as for debt consolidation, investment, home renovation, to purchase or refinance an owner-occupied property and investment property, and also for constructing an investment or owner-occupied property.
Many of the AMO home loan products are available as lo doc loans, including bridging finance, line of credit loans, construction loans, offset loans, principal and interest or interest-only loans.
You can take out a Construction loan for a number of stages. For example, you can take up this loan at a flooring stage during the construction of concrete or timber flooring; at the framework stage for the development of the framework; at lock-up stage for windows, doors and walls; at fit-out stage for bathrooms and kitchen; and at the completion stage of the property. It is mandatory to provide council-approved plans and a fixed price tender from a qualified registered builder in order to qualify for a construction loan. Moreover, a copy of the builders insurance should be valid during the construction of a property.
Once the construction of a property starts, the loan structure will feature as an interest-only repayment method. At the end of each stage, payments will be conducted to your builder and an invoice must be provided at that time. Valuation will also be conducted as each stage is completed. On completion of the property, the repayment structure will change to a variable home loan and a final valuation will establish the value of a property.
Zero20 home loan
The Zero20 home loan is an award-winning product that can help you reduce the upfront and ongoing cost of purchasing a new property, buy an expensive property which you otherwise cannot afford, or reduce your monthly mortgage repayments. This loan works in conjunction with a traditional home loan and lets you move some of the traditional home loan expense in the future when you eventually sell your property. It allows you to borrow a loan up to a certain percentage of your property value and there is no annual percentage rate that is applicable to the Zero20 home loan unless you default on the actual loan.
Line of Credit home loan
The Line of Credit home loan can be used for any purpose. The benefit of the line of credit home loan over a regular home loan is that interest is not usually charged on the unused part of the line of credit. The list of AMO Line of Credit home loan features includes a redraw facility, additional repayments, no annual or monthly fees, a line of credit available to the borrower, no switching fee subject to certain terms and conditions, loan splits, and phone and internet access.
The security type is owner occupied or investment and the repayment methods are telephone transfer, internet transfer, BPay, direct debit, direct salary and deposit payments.
No Financial loan
Company borrowers, self employed or PAYG can apply for the No Financial Loan. The benefits of this loan product are that you are not required to pay a switching fee upon fulfilment of certain conditions and there will be no monthly or annual fee. You can get a line of credit, loan split option, redraw facility, and phone and internet access. You can also make additional repayments if you choose to pay off the loan earlier.
Non-Conforming loans and Bad Credit loans
If you are a non-resident, have a poor credit history, are facing problems to meet bank requirements, have had your credit application declined for certain reasons, have been self employed for less than two years, have been unable to provide documentation of income, or are a seasonal or a contract worker, then this non-conforming home loan may be an option for you.
Credit-impaired borrowers, individuals, companies or trusts and PAYG or self-employed persons can apply for a non-conforming loan. Repayments consist of principal and interest, and interest-only. You are not required to pay any annual or monthly fee, and you have telephone access and redraw facility which is subject to certain conditions imposed by AMO.
Pros and cons of AMO home loans
- Unlimited additional repayments. Some AMO home loans allow you to make additional repayments for an unlimited period of time if you wish to pay off your loan earlier than the due date in order to decrease the number of terms and interest payments.
- Combination loans. AMO also allows you to take a combination of loans available in order to get the loan that suits your needs.
- Free switching. AMO allows free switching from one loan to another, subject to certain conditions, if you are not satisfied with your current home loan.
- Telephone and Internet access. AMO lets you conduct your regular activities via the Internet or telephone and enables you to resolve your queries no matter where you are.
- Lack of accessibility. Although there is 24/7 access to your home loan through online banking, the AMO group only has a few branches within the Sydney area. If you prefer face to face contact then it may be a bit difficult to visit a branch.
How to apply for an AMO home loan
If you are interested in an AMO home loan you can make contact with a mortgage broker who will provide you with product details and help with your application.
- Income and expenditure detail. If you are a self-employed applicant, you are required to provide details of your income and expenditure for the previous and current year. It will help AMO to assess your financial data and process your application after considering other relevant details.
- Fund position. You are also required to give your fund position in order to get an understanding of how your loan will be financed. You need to provide information about the funds available to you and the funds that you need to apply for.
- Loan requirement. These are some of the most important details you will need to give regarding how you want to organise your loan. The details include the loan amount, how you want to split your loan, mentioning the purpose of taking a loan, the home loan product you selected and how you wish to repay it.
- Assets and liabilities. Mentioning the financial details in the application form helps AMO assess your application more clearly. You are required to provide the details of your asset, such as the address of your property or vehicle and its value. You are also required to provide the cash in hand that you currently have and other miscellaneous assets. If you own shares or participate in a superannuation fund, specify it in the form. On the other hand you are required to provide information about any liabilities, such as credit card details, personal loans or leases, any other home loans, and retail store cards or interest-free facilities.
- Security offered. You will also need to provide details of the property which was offered as security for the loan. You are required to provide information about the title holder, the estimated value of the security, the address of the property and other relevant details.
- Insurance. You are required to send the company name, insurance cover amount, due date of the policy, and the policy number of your insurance plan and need to supply a Certificate of Currency noting the lender as mortgagee.
Documents needed to apply for an AMO home loan
Depending on the AMO home loan product you are after, you are required to submit the following personal details:
- Provide at least 100 points of ID with the application documents including passport, driver’s licence and birth certificate.
You need to submit the following property documents to AMO in order to fulfil the requirement of the home loan application:
- A copy of the front page of the contract if you purchased a property
- A Rent Letter if the property is for investment purposes
- A rates notice for any existing property or properties
- Details of the home building insurance
- Details of any other types of insurance
The following financial information is required to apply for AMO home loan products as it will be useful for AMO to verify your details in the application form:
- Two pay slips or a letter of employment. If you are self employed, provide a two-year balance sheet and two tax returns
- Two years worth of tax returns or group certificates
- A confirmation of deposit
- A copy of existing loan statements for the last 12 months if you are refinancing
- A Mandate or Consultant Agreement
- $300 part establishment fees
In order to make a wise decision, it is better to compare the AMO home loan products and talk to an AMO mortgage expert or mortgage broker. This will help you get the best deal that suits your financial needs and will make it easier for you to manage your finances accordingly.