What interest rate do you pay on a Connective Skip loan?

As at 18 June 2026, variable principal-and-interest rates start from 6.39% p.a. (6.60% p.a. comparison rate*) for owner-occupiers and 6.79% p.a. (7.02% p.a. comparison rate*) for investors, across the 85–98% LVR range. Rates change and depend on your circumstances — ask us for current pricing.

What is the minimum deposit for a Connective Skip home loan?

As little as 2% of the purchase price, plus purchase costs such as stamp duty and legal fees. Lending at up to 98% LVR is subject to Skip's eligibility and credit criteria.

Do I have to pay Lenders Mortgage Insurance on a 2% deposit loan?

No. Skip doesn't charge LMI. It applies a lower-cost upfront fee instead, which is designed to be cheaper than a comparable LMI premium at the same loan-to-value ratio.

Can property investors use Connective Skip?

Yes. Unlike the government's First Home Guarantee, which is limited to owner-occupiers, Connective Skip is also available for investment purchases at high LVRs, subject to lending criteria.

Can I get Connective Skip directly from a bank or online?

No. Connective Skip is a white-label product available exclusively through mortgage brokers on the Connective network. Legacy Home Loans — the broking arm of Legacy Home Loans — brokers through Connective, so we can assess and lodge it — alongside comparing it against 70+ other lenders. Get in touch to talk it through.

How is Connective Skip different from the 5% deposit First Home Guarantee?

The First Home Guarantee is a government-backed scheme for owner-occupiers with property price caps by state. Connective Skip is private lending: it allows a smaller deposit (2% vs 5%), has no scheme price caps, and is open to investors — but it's priced as high-LVR lending, so the rate is typically higher than a scheme loan at a major bank. Which one wins depends on your circumstances.

Is buying with a 2% deposit a good idea?

It depends. You'll borrow more, pay a higher rate, and start with a very small equity buffer — but you may also stop paying rent years earlier and buy at today's prices rather than tomorrow's. The honest answer comes from modelling both paths against your income and goals, which is exactly what a broker should do before recommending anything.

Lender update · 6 min read

AMP's 40-year investor loan: what Equity Flex actually means for your cash flow

By Adam O'Neill, Principal & Mortgage BrokerPublished 20 August 2026

In one paragraph

AMP Bank has launched Equity Flex, Australia's first home loan with a term of up to 40 years, paired with up to 10 years interest-only and no reassessment when that period ends. It's for investors only for now. The catch most coverage misses: AMP still assesses whether you can afford it on a 30-year principal-and-interest basis, so the longer term lowers your repayments — it doesn't let you borrow more. It's a cash-flow and holding-power tool for investors with strong equity, not an affordability hack.

At the end of July, AMP Bank did something no other Australian bank had done: it launched a home loan with a term of up to 40 years. The product is called Equity Flex, and it pairs that longer term with an interest-only period of up to 10 years — with no reassessment when that period ends.

The coverage has swung between "the future of affordability" and "a debt trap". The truth sits in the middle and depends entirely on your situation. Here's the plain-English version.

What is Equity Flex?

Equity Flex is currently for investors only — not owner-occupiers, at least for now. AMP has said it may look at extending it to owner-occupiers down the track, but today it's an investment-property product. The headline features at launch:

Loan term up to 40 years.
Interest-only for 6 to 10 years, with no reassessment when the interest-only period ends.
LVR of 80% or below.
Minimum loan $100,000.
Offset and redraw available.

The part most coverage skips: it won't necessarily let you borrow more

This is the bit worth reading twice. AMP assesses whether you can afford the loan on a maximum 30-year, principal-and-interest basis — not over 40 years, and not on the interest-only repayment.

In plain terms: the 40-year term and the 10-year interest-only window lower your actual monthly repayments, but they don't loosen the serviceability test the bank uses to decide how much you can borrow. So this isn't a borrowing-capacity hack. It's a cash-flow and holding-power tool for people who already qualify — and that distinction is exactly what a lender's marketing won't lead with.

What Equity Flex can free up

The borrower: An established investor, around 45, holding $1.9 million in total portfolio debt.
The move: Refinanced part of that debt onto Equity Flex — a 40-year term with a 10-year interest-only window.
The result: Roughly $2,800 per month freed up across the portfolio, with no increase in total borrowing.
The point: Same debt, more breathing room — a buffer to hold and maintain, not a way to borrow more.

Who it's actually built for

AMP has been fairly open that this is aimed at investors who are asset-rich but increasingly conscious of cash flow — people with solid equity who want to ease monthly pressure and hold their properties through a period of change, including cost-of-living pressure and the federal budget's changes to negative gearing and capital gains tax. If you have strong equity and a clear long-term hold strategy, it's built for you. If you're trying to stretch into a purchase you can't otherwise afford, it isn't.

The trade-offs to go in with your eyes open

Lower repayments are never free. Stretching a loan over 40 years, or parking it interest-only for a decade, means:

You pay more interest over the life of the loan. A lower monthly payment is not a cheaper loan.
You build equity more slowly — and during an interest-only period, you're not paying down principal at all.
The repayment step-up is real. When interest-only ends, repayments jump as you start paying principal over the remaining term. Worth planning for now, not being surprised by later.

What are the interest rates?

At launch (late July 2026), interest-only pricing started from 6.54% p.a. (6.85% p.a. comparison rate*) for borrowers at an LVR of 60% or less, and 6.59% p.a. (6.88% p.a. comparison rate*) up to 80% LVR. Principal-and-interest pricing started from 6.39% p.a. (6.80% p.a. comparison rate*) across LVR brackets up to 80%.

Rates change constantly, and the rate you're offered depends on your circumstances — treat these as a point-in-time reference, not a quote. Ask us for current pricing on your scenario.

Where the tax angle fits

A lot of the interest in Equity Flex is tied to the recent negative gearing and capital gains tax changes. How those changes affect you — and whether an interest-only structure helps or hurts your position — is a tax question, and it's one for your accountant or a licensed tax adviser, not something to decide off a blog post (including this one). We're happy to work alongside them so the loan structure and the tax strategy actually line up.

The bottom line

AMP being first to 40 years is a genuine bit of innovation, and a useful addition to the toolkit for the right investor. But "the right investor" is doing a lot of work in that sentence. The real value of a broker here isn't access to one clever product from one lender — it's looking at your whole position and working out whether Equity Flex beats the alternatives across the 70+ lenders on our panel, or whether a more conventional structure leaves you better off. Sometimes the flashy new product wins. Often it doesn't. That's the conversation worth having.

Wondering if a longer term or interest-only stacks up for you?

Book a free chat. We'll model the cash flow, the step-up when interest-only ends, and how Equity Flex compares against the 70+ lenders on our panel — then tell you straight which one fits.

Book a free chat

Frequently asked questions

Can owner-occupiers get a 40-year loan from AMP?

Not yet. Equity Flex is currently for investors only. AMP has said it may consider extending it to owner-occupiers over time, but at launch it's an investment-property product.

Does a 40-year term let me borrow more?

Generally no. AMP assesses serviceability on a maximum 30-year, principal-and-interest basis, so the longer term lowers your repayments but not the amount you can borrow. It's a cash-flow tool, not a borrowing-capacity boost.

What are the interest rates on Equity Flex?

At launch (late July 2026), interest-only pricing started from 6.54% p.a. (6.85% p.a. comparison rate*) for lower-LVR borrowers, with principal-and-interest from 6.39% p.a. (6.80% p.a. comparison rate*), for LVRs up to 80%. Rates change — ask us for current pricing.

Is interest-only for 10 years risky?

It depends on your plan. You won't pay down principal during the interest-only period, and repayments step up once it ends. For an investor with strong equity and a clear hold strategy it can improve cash flow; it isn't a fix for affordability. We'll model the step-up before you commit.

About the author

Adam O'Neill is the Principal of Legacy Home Loans in Richmond, Melbourne, and an accredited mortgage broker through Connective (Australian Credit Licence 389328), with access to a 70+ lender panel. Contact him at info@legacy.net.au or 0414 225 435.

Sources & further reading

Broker Daily — AMP Bank launches 40-year investor loan with 10-year IO (30 July 2026)

General information only: This article is general in nature and doesn't take into account your objectives, financial situation or needs. Consider its appropriateness for your circumstances and seek personal advice before acting. Figures are illustrative only; lending eligibility criteria, fees and charges apply and product details may change. *Comparison rates are based on a loan of $150,000 over 25 years. WARNING: Comparison rates are true only for the example given and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate. Rates quoted are current as at 30 July 2026 and subject to change. Mortgage and finance broking is provided by Legacy Home Loans. Adam O'Neill, Credit Representative Number 473493, is authorised by Ayrshire Group Pty Ltd ABN 16 700 891 676, Credit Representative Number 581051, under Connective Credit Services Pty Ltd ABN 51 143 651 496, Australian Credit Licence Number 389328. Legacy Financial Planning Pty Ltd — ABN 91 167 254 202 | AFSL 519446.