Enjoy a home loan with a discounted interest rate for the first year.
The RAMS Discount Home Loan is a flexible loan option for first home buyers, owner-occupiers and investors. RAMS is helping you save even before your loan terms begin with options of family guarantee and deposit bonds that can help you avoid paying Lenders Mortgage Insurance or obtaining bridging finance for your deposit. Borrowers can then enjoy a substantially discounted interest rate for the first year of the loan and no monthly account keeping fees and then a lower ongoing discount for the life of the loan. If you're looking for a loan to support you as you try to meet your savings goals, then take a look at the features offered by RAMS with their discount home loan.
Please note that this product is no longer offered for new customers, and the information on this page is intended for informational purposes only.
Who is the loan suitable for?
This loan is suitable for borrowers looking for a loan with no monthly account-keeping fees and the flexibility to make extra repayments or draw excess funds. You might want to consider this loan if you are:
- A first home buyer
- An investor looking to finance an investment property
- An owner-occupier looking for a loan under $750,000.
This loan is not suitable for those who wish to pay interest only in advance, or those in need of a bridging loan, although as mentioned, the ability to get a Deposit Bond from RAMS could reduce the need for bridging finance.
Features of RAMS Discount Home Loan
This home loan has features which make it a competitive option for those looking to buy a property. Some of the standout features include:
- Savings. Borrowers can get a 1.20% p.a. discount off the RAMS standard variable rate in the first year (bringing the interest rate to 4.65% p.a.) and then a 0.90% p.a. discount off for the life of the loan.
- Maximum LVR. You can borrow up to 80% of the property value with this loan, or 97% if you pay RAMS Risk Fee, which is similar to Lender's Mortgage Insurance (LMI).
- Family guarantee. RAMS offers you the option of obtaining a family guarantee so a family member can put equity of their own property towards your deposit, helping you to avoid LMI if your deposit is less than 20%.
- Fees. You will not be charged monthly account-keeping fees with this loan option.
- Deposit bond. This feature acts as a guarantee to the vendor and allows borrowers to pay the deposit amount and the balance of the purchase price on the day of settlement rather than providing it up front or on exchange, which can save you from having to obtain bridging finance.
- Lifestyle option. RAMS offers a 'loan holiday' option whereby borrowers can defer loan repayments for up to six months, an option available twice during the life of the loan. During this time you must still make at least 50% of normal interest-only repayments and you'll need to provide evidence of the reason for the holiday such as redundancy notice or medical evidence.
- Flexible repayment options. You can choose between weekly, fortnightly or monthly repayments and can make deposits through Direct Debit, Salary Credit, BPAY and online via myRAMS.
Fees you can avoid:
- If you only require one property valuation you can avoid the additional valuation fee of $220.
- There's no account-keeping fee.
- If you stay with RAMS and do not discharge your home loan, you can avoid a discharge fee of $295 per loan plus legal costs.
- If you do not convert your loan to a Full Doc RAMS product you can avoid the $295 conversion fee.
Fees you can't avoid:
- Application fee of $595.
- Loan settlement fee of $275.
Pros and cons
- Options for first home buyers to save money by avoiding LMI through family guarantees and to avoid obtaining bridging finance with deposit bonds.
- Discounted interest rate.
- There's no debit card or cheque book available with this loan .
- You will be charged for discharging or switching your loan, which can be limiting to some borrowers.
How to apply for RAMS Discount Home Loan
In order to apply for a RAMS home loan simply follow the secure link on this page and fill out an online application form. You can then arrange to see a home lending specialist at a RAMS home loan centre or at your own home. You will generally need to supply the following documents:
- A completed and signed RAMS application form.
- 100 points of ID.
- Evidence of income such as a recent payslip, a letter from your employer or a recent group certificate.
- If you are buying your first home your will need a signed and completed First Home Owner Grant application.
- If you are purchasing a property you will need a signed copy of a contract of sale document.
- If you are refinancing you will need six months of home loan statements.
- If you are refinancing or the loan is for an equity release you will need the rates notice for the existing property which will be used as security.
- If you are consolidating an existing loan you will need three months of loan statements.
To be eligible for a RAMS home loan you need to meet the following criteria:
- Be employed for a minimum of six months
- Be aged 18 or older