A no-frills home loan with a competitive interest rate and no monthly fees
The RAMS Essential Home Loan allows customers to take advantage of a low interest rate without having to pay for added features they may not use.
|Product Name||RAMS Essential Home Loan|
|Interest Rate Type||Variable|
|Comp Rate^ (p.a.)|
|Minimum Loan Amount||$15,000|
|Minimum Loan Term||1 year|
|Maximum Loan Term||30 years|
|Maximum Insured LVR||95%|
|Mortgage Offset Account||Yes|
|Mortgage 100% Offset||Yes|
|Loan Redraw Facility||Yes|
|Split Loan Facility||Yes|
|Fixed Interest Option||Yes|
|Suitable for Investment||Yes|
|Available as equity loan/line of credit||No|
|Repayment Type||Principal & Interest and Interest Only Options|
|Ongoing Fees||$0 p.a.|
- You can make extra payments with no penalty.
- You can withdraw excess cash from the mortgage via the redraw facility.
- There is a $0 annual fee.
- There is a $285 settlement fee.
- A $295 discharge fee applies when you close your home loan account.
- There is a $595 application fee.
Who is RAMS?
RAMS is a subsidiary of the Westpac Group, offering a range of competitive financial products with the backing of one of Australia's largest banks. RAMS has been offering flexible and affordable home loans since 1995.
Details to consider about the RAMS Essential Home Loan
The RAMS Essential Home Loan is available for owner occupiers or investors purchasing or refinancing a home. A bridging loan option also exists for those homeowners who wish to purchase a new home before selling their old home. The loan can also be used for construction or to purchase vacant land.
Features of the RAMS Essential Home Loan
- Maximum Loan-to-Value Ratio (LVR). The RAMS Essential Home Loan has a maximum LVR without lenders mortgage insurance of 80%. RAMS can offer up to 95% of the purchase price of the property, provided an applicant meets the various criteria given by RAMS. Also, RAMS can capitalise the 'RAMS Risk Fee', which is payable when your LVR is over 80%, into the total cost of your loan as long as it doesn't push the total LVR over 98.2% for standard owner occupier loans with principal and interest repayments.
- Flexible repayments. Repayments can be made weekly, fortnightly or monthly for principal and interest loans, and there is no penalty for extra repayments. Interest-only payments must be made monthly.
- Redraw facility. If you've been paying extra amounts into the home loan account, it's possible to redraw these when you need to use that money for other purposes.
- Interest-only repayments. The RAMS Essential Home Loan allows interest-only repayments for up to 10 years. Your maximum LVR if you opt for interest-only repayments is only 80% even if you capitlise the RAMS Risk Fee it has to stay below 80% LVR.
- Construction loan option. You are able to take out the RAMS Essential Home Loan for the use of building your new home, when you do this you have the same LVR conditions as a standard owner occupier loan but may have other fees and charges associated with this loan. However, if you are required to pay the RAMS Risk Fee you can only captialise it as long as the LVR doesn't go above 97% of the loan amount for owner occupier loans that are principal and interest or interest only repayments.
- Investor options. This loan can be used for the purpose of purchasing an investment property with the option to repay either with principal and interest repayments or interest-only. The maximum LVR, before RAMS Risk Fee or LMI, if you choose to use it for this purpose is 90%. You can capitalise the RAMS Risk Fee into your loan as long as it does not increase the LVR over 90%.
There is no ongoing account keeping fees attached to this loan, there are other fees you will be asked to pay which are listed below:
- Application fee: $595. This covers the lender’s costs incurred when processing your loan approval.
- Discharge fee: $295. This fee applies when you discharge your loan.
- Settlement fee: $285. This fee is charged when settlement of your loan is reached.
- Switching fee: $295. This fee applies if you opt to change your loan from the RAMS Essential Home Loan to any other RAMS full doc home loan.
Note the first valuation done upon the creation of this loan is free, but additional valuations cost $220 each.
Applying for a RAMS Essential Home Loan
If you are interested in the RAMS Essential Home Loan you will need to fill out a short form online. You will need to provide your basic details, your email address and phone number. RAMS also request some specifics in regards to your loan needs, your employment status and how you heard about RAMS.
Using this form you can then either request a meeting with a RAMS representative or a callback from a RAMS representative to discuss your lending needs. Please be aware that in order to apply for this loan you will need to be 18 years or older.
If you are looking for a loan that has a competitive rate and doesn't have a lot of the flashy features you may not use then it's worth adding the RAMS Essential Home Loan to your comparison.