RAMS Loan Guide

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RAMS has been helping Australians purchase homes since 1995, and have since expanded their business and added to a catalogue of offerings.

RAMS has been helping Australians purchase homes since 1995, and have since expanded their business and added to a catalogue of offerings.

There are currently over 70 RAMS home loan centres across Australia, with this number growing every day. The company boasts a long list of awards – most of which revolve around their home loan product offerings.

RAMS first came onto the Australian banking scene in 1991 under the name Registered Australian Mortgage Securities (RAMS). They didn’t start retail banking until 1995 – four years after their initial establishment.

Since then, they’ve experimented with different types of home loan products, which have proven to be popular with customers. They opened transactional and savings accounts, and eventually became one of the more popular home loan brokers in the market.

You can choose a variety of loan options from RAMS, depending on your financial situation. RAMS also offers specific options that cater to self-employed customers. The following is a list of the loan selections available through RAMS:

  • Fixed-rate home loan/li>
  • Variable-rate home loan
  • Investment home loan
  • Split Loan
  • Construction home loan
  • Self-employed home loan
  • Line of credit home loan

Take a look at the “Loan Types” section below to get more information about the specific home loan products from RAMS.

RAMS offers a few different features with their home loan packages. These features apply to most loans in their lineup, but there are some restrictions like line of credit loans and fixed-rate loans.

Flexible Repayments

RAMS allows you to choose when you make your repayments in offering a monthly, weekly or fortnightly payment schedule. You can make your payments when they work best for you instead of adhering to a strict borrowing schedule.

Offset Accounts

Variable-rate loans through RAMS allow you to offset your interest with a 100% offset deposit account. Deposit your payments into a RAMS account and save on interest. The more you add to this account, the less money you’ll have to pay on interest in the long-run.

Parental Leave Option

Most of the RAMS home loan products include a parental leave option. The exception to this rule is with fixed-rate and line of credit loans.

The parental leave option gives borrowers the chance to reduce their principal and interest payments by up to half for a period of up to six months. RAMS allows borrowers to utilise this feature for a total of 12 months throughout the life of their loan.

Value Advantage Package

The value advantage package includes most loan products through RAMS and allows you to save a percentage of your interest rate – depending on how much you borrow. This package will save you money on application fees, service fees, and other fees when you take out multiple loans through RAMS.

RAMS provides several different loan types for borrowers looking to invest, live in or build a house. Below is a breakdown of the different loan products you can obtain through RAMS.

Low Rate Home Loan

The low rate home loan is RAMS’ name for their standard variable-rate home loan. You can choose this loan product if you’re living in the home, investing in property or building your own house.

The features for the variable-rate loan include a flexible payment schedule, additional repayments, redraw facilities and a parental leave option. There also aren’t any monthly fees with the low rate home loan.

You can choose to split your loan, and have the option to repay interest only or principal and interest. Interest only payments can last for five years for owner-occupied loans and ten years for investment property loans.

Fixed Rate Home Loan

The fixed-rate home loan from RAMS is the standard fixed-rate loan type. You can select your fixed-rate duration from one to five years, or fix your rate for as long as ten years.

RAMS caps additional repayments at $30,000 during the fixed-rate period of your loan, but unlike a lot of other lenders they do allow redraw facilities. You can withdraw a minimum of $1,000 from your additional repayments, but you will have to pay a redraw fee of $10 per transaction.

Full Feature Home Loan

The full feature home loan is another variable-rate home loan for investors and owner-occupied borrowers.

The interest rates on this loan are a bit higher than they are with the low rate loan, but you can bundle this loan through the value advantage package to save money in the long run (provided you borrow enough funds).

Full feature home loan features include a 100% offset account, the ability to redraw funds at an ATM, value advantage package eligibility and the parental leave option.

Line of Credit Loan

The line of credit loan allows you to unlock the equity in your home and use the funds as needed. You can also include the line of credit loan in the value advantage package if you have other loan products from RAMS.

The RAMS line of credit loan allows you to access your funds through multiple outlets. They also only charge interest on the outstanding loan balance and don’t require regular repayments if you’re under the credit limit.

Self-Employed Home Loan Options

RAMS offers specified options for self-employed borrowers as well. These include fixed and variable-rate products as well as a line of credit loan.

Self-employment loans allow eligible customers to borrow up to 80% of the property value without having to pay lender’s mortgage insurance. If the loan to value ratio (LVR) is 70% or below, you will be eligible for a discounted rate with the variable-rate loan.

Fixed-rate self-employment loans provide the opportunity to pay up to $30,000 in additional repayments without having to face fixed-rate break costs. Borrowers can include all of these loan products in the value advantage package.

To start the application process, you’ll have to meet with a RAMS loan representative. You can visit one of their locations, give them a call or fill out an online form to schedule a meeting time.

When you attend your preliminary meeting, you should bring along all the relevant financial information including assets and any debts you might have.

A RAMS loan officer will review your application, make sure everything is correct and proceed from there.

RAMS allows their borrowers to redraw their funds – no matter which loan type they choose. A lot of other lenders either charge high fees for fixed-rate redraws or disallow them completely.

RAMS does charge a $10 redraw fee if you withdraw additional funds during the fixed-rate period of your loan. These redraws are also required to be above $1,000.

Variable-rate loans, on the other hand, don’t have any fees attached to them. There is also no minimum withdrawal for your additional funds if you have a variable-rate loan.

Along with redraw facilities, RAMS enables borrowers in making extra repayments to save on interest in the long-run. Like a lot of other financial institutions, RAMS caps their fixed-rate extra repayments but allows unlimited additional payments on variable-rate loans.

You are only able to repay a total of $30,000 in extra funds while your loan is in the fixed-rate period. Once you transition to a variable-rate loan, though, you’ll be able to start paying off your loan as much as you can afford.

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