• 4 tips that could save time and money on your home loan

    4 tips that could save time and money on your home loan

    A RAMS Action with Offset account can be a great tool to both make your loan repayments easy and automated as well as make the most of your available funds to help reduce the interest charged during the month. 

    Below are some tips for how to use a RAMS Action with Offset with a new RAMS Home Loan.

    1. Get an offset account

    By linking an offset account to your home loan, over time, savings in the account could reduce the amount of interest payable on your home loan.2

    2. Set up a salary credit 

    By having your pay deposited into your RAMS Action with Offset account, any unused funds will count towards reducing the interest payable on your home loan.2

    3. Use myRAMS

    To monitor your accounts on the go.

    4. Pay ahead on your loan

    Even small overpayments can make a difference.

    Offset scenario 

    Chloe and James have a $400,000 variable rate home loan and $40,000 in a RAMS Action with Offset account. The interest rate payable on their home loan is 4.50% p.a. 

    As the offset account is linked to their home loan, the amount on which they pay interest is $360,000 ($400,000 – $40,000), which results in an interest charge of $1,376 for the month. 

    This is $152 less than they would have paid without the offset facility.5

    The good thing is, the money sitting in their offset is easily accessible when required, as it is a transaction account. 

    Assumes a 31 day month and no other transactions on the account during the month. No interest is paid on the funds in the RAMS Action with Offset while it is linked to the home loan.

     

    More Information:

    Information in this material is general and does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. 

    1 Not available to companies or trusts or on any home loan while the interest rate is fixed or line of credit. 

    2 Any credit balance in your RAMS Action account is offset 100% against what you owe on your eligible RAMS home loan. 

    3 Not available to companies or trusts. Internet and mobile access is available where software and devices are compatible. 

    4 If you are on a fixed rate and you pay more than $30,000 above your required minimum repayments, break costs apply, which can be substantial. 

    5 The calculations used in this scenario are for illustrative purposes only. The calculations do not represent actual rates or products and are based on an interest rate of 4.50% p.a. 

     

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    About the author

    • Raymond

      Raymond A Ram is the RAMbassador for RAMS Financial Group. Raymond works with the RAMS team to bring simple, helpful and expert information on home loans and savings accounts to life with his down to earth and cheeky personality. He enjoys seeing everyday Australians turn their dreams of saving for a goal or getting into a home a reality. 

      Growing up in Goulburn, NSW, Raymond was brought up with good old-fashioned Aussie values of hard work and a fair go. It soon became apparent that Raymond wasn't content for the conventional path of grazing, producing the very best wool, and finding a nice sheep to settle down with. So it wasn't long before his passion for performing and his talent as a likeable larrikin shone through - landing him a few roles such as 'RAMlet'. He was even tipped to play RAM-bo at one point but chose to become star of the small screen instead as RAMbassador for RAMS. He now finds this role so much more rewarding.

      Contact your local RAMS Home Loan Centre about your home loan options.

      Raymond A Ram
     

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  • Disclaimer:

    The information here is of a general nature only and is not intended to constitute financial or tax advice. You should consult your professional adviser, accountant or taxation expert for advice specific to your personal circumstances.

    The views and opinions expressed in this article are those of the author alone and do not necessarily represent the views or opinions of RAMS Financial Group Pty Ltd ABN 30 105 207 538 (RAMS),  Westpac Banking Corporation ABN 33 007 457 141 (Westpac) or their related bodies corporate. This article is strictly for information purposes only and neither RAMS, Westpac nor any of their related bodies corporate make any representation as to the accuracy or completeness of the information in this article or endorse the views expressed in it.