RAMS Home Loan Review
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You may be considering RAMS home loans to finance your first home. However, before deciding if they are the right mortgage provider for you, you might want to examine their services, interest rates and loan options.
RAMS offer a variety of home loans, including Fixed and Variable rates, as well as Full Feature home loans and Line of Credit loans. RAMS low rate home loan provides you with benefits like no monthly fees and the freedom to make additional repayments. Their Full Feature home loan offers savings opportunities with an offset account and the Value Advantage Package.
Be sure to compare the offerings on a RAMS home loan to other major loan providers in Australia so that you can make an informed decision regarding your mortgage.
Take note: ComparingExpert and consultants are not mortgage brokers. The information provided in this article is to help you make an informed decision. Please contact the home loan provider or financial institution for advice and guidance.
History of RAMS home loans
RAMS has been helping Australians achieve homeownership goals since it was founded in 1991 and introduced in the general market in 1995. In addition to providing affordable and straightforward mortgage options, they also offer a variety of other services like savings accounts, transaction accounts and a range of insurance products.
In the 20 plus years that they have been providing their services, they have established 70 home loan centres in regional and metropolitan regions Australia-wide. Currently, they offer an extensive customer support system that is available 24/7.
RAMS mortgage options
RAMS has a variety of home loan options to meet your requirements, including:
Low rate home loan - Variable rate
Available to owner-occupiers and investors, RAMS Variable interest rates will fluctuate according to the market. They offer a minimum loan amount of $15,000. There are no restrictions on the maximum loan amount you can qualify for. However, you will still be required to pay a deposit on your home loan. Other benefits include unlimited repayments and withdrawals as well as zero monthly fees.
Fixed rate home loan
RAMS Fixed rates can be set for a period of 1 to 5 years or a maximum of 10 years. A RAMS Fixed rate home loan may be ideal for individuals needing to plan their budget as interest rates will remain the same for the duration of your Fixed period.
Full Feature home loan
This home loan helps you save money while paying off your RAMS Variable rate home loan. You also have the option to sign up for their Value Advantage Package that could help you save on fees and receive a discount of up to 1% on your interest rate. However, qualification for this discount will depend on your p.a. Loan to Value Ratio.
Line of Credit
A Line of Credit loan from RAMS provides you with the opportunity to access funds to improve the equity of your loan. The interest rate will generally be charged according to the balance of your home loans. This means that you will pay less interest if you have made additional repayments on your loan, which brings down the outstanding balance of your mortgage.
Features available with a RAMS home loan
Generally, the following features are available when you take a mortgage from RAMS:
- Redraw facility: If you've made extra repayments on your home loan, you have the option to withdraw the funds should you require it. However, if you have a Fixed rate home loan, the minimum withdrawal amount is $1000, and you will be charged a $10 fee for the transaction.
- Offset account: The Full Feature home loan allows you to use the money in your transaction account to offset the balance of your loan. This lowers the total balance of your mortgage while reducing the amount of interest that is due.
- Value Advantage Package: For an annual fee of $375, you save on variation fees, monthly service fees and application fees, up to a total of $1,130. You might also be entitled to a discount of up to 1% on your interest rate if your total loan value exceeds $150,000. Take note that if you have a low rate home loan, you will not be able to qualify for this benefit.
- Minimum deposit: RAMS requires a minimum deposit amount of 5%. However, you may be able to qualify for a no deposit home loan when using RAMS Fast Track, which could enable you to borrow up to 110% of the property value.
- RAMS Fast Track: First home buyers might be able to use RAMS Fast Track option, which allows a family member or friend to become a guarantor on your mortgage. Your guarantor will secure a certain amount of money towards your loan from the value on their existing home loan. They will usually be held liable for the security amount if you are not able to make frequent repayments on your loan.
- Loan splitting: Generally, you have the option to split your home loan between Fixed and Variable interest rates.
- Interest-only payment: You have the option to make interest-only payments on your home loan for a period of 1 to 5 years or for a Fixed period of 10 years, regardless of the type of home loan you have.
- Choice of payment frequency: If you have a Full Feature or Line of Credit home loan, you can make payments weekly, fortnightly or monthly. This option is not available if you have a Low Rate Home Loan or Fixed-rate home loan.
- Loan switching: Low Rate, Full Feature and Line of Credit Loans can be switched from a RAMS Variable rate to a Fixed-rate home loan.
- Repayment holiday: If you are struggling to make payments, you have the option to take a break or reduce payments for a set period. Terms and conditions will apply.
- Parental leave option: RAMS offers a repayment deferment period of 6 to 12 months if you plan on taking maternity or paternity leave.
How to apply for a RAMS mortgage
To apply for a mortgage, you will generally need to phone the RAMS home loans contact number and speak to a mortgage broker who will guide you along the application process. Alternatively, you could fill in the online application form.
Generally, you will be able to apply for a RAMS mortgage if you are 18 years and older and have the following:
- A fully completed application form.
- Proof of income in the form of a payslip, your most recent group certificate, or a letter from your employer confirming your income.
- Each applicant will need to provide adequate documentation as well as a 100 Point Check AML Customer Identification Checklist.
- First home buyers will need to supply their First Home Owner Grant application.
- A signed copy of your contract of sale.
- If you are refinancing your home, you will need to provide your 6 most recent home loan statements, as well as a rates notice for the property that will be used as security.
Frequently asked questions and answers
To determine whether a RAMS home loan is a good option for you, you will need to assess your mortgage requirements as well as your budget. You may want to compare RAMS home loan rates and features with other major lenders in Australia.
You can phone RAMS directly on 13 7267. Alternatively, send in a query via email, or go to one of their home loan centres and speak with a mortgage broker face-to-face.
Generally, the total loan amount that you'll qualify for depends on your choice of home loan type, your deposit amount and the value of the property you wish to buy. You will also be responsible for any additional fees, these generally include settlement, application, and valuation fees, solicitor’s fees and stamp duties.
Use the RAMS home loan calculator to determine your borrowing capacity.
No, RAMS has not announced any interest rate hikes since the writing of this article. They have issued a statement detailing their 0.15% p.a. decrease on all Variable rate home loans, which comes into effect on the 16th of October 2019.
Currently, the company is owned by Westpac. It was placed on the global market in 2007 by founder John Kinghorn when RAMS was on the brink of collapse. After Westpac Banking Corporation purchased it in 2008, the mortgage provider extended its services to include savings and transaction accounts.
Yes, RAMS was purchased by Westpac in 2008 when they ran into financial difficulties.
This company was founded by John Kinghorn in 1991, before being opened to the public loan market in 1995.
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