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  • Mortgage Basics

    Mortgage Basics

    Seven mortgage questions to ask your lender 

    There are many things to consider about your mortgage when you are looking at buying a new house or refinancing an existing loan. To find out more about what mortgage options are available to you, call 13 RAMS (13 7267) to make an appointment with your nearest RAMS Home Loans Centre. 

    1. How much can I borrow?  

    Depending on your income and what you’re buying, you can borrow as much as 95%1 of the purchase price (or valuation if lower). You can use our Mortgage Affordability Calculator to receive an indicative borrowing amount.  

    2. What costs are involved in buying a property?  

    You’ll need to set aside funds for a building and pest inspection of the property to ensure it’s sound, plus legal costs, government stamp duty, lender’s fees and other loan set-up costs including RAMS Risk fee and application fees. 

    3. Is the loan with the lowest interest rate the best?  

    It depends on your needs. Loans with slightly higher interest rates generally offer more flexibility and features that may be worth paying for, for example, free redraw. 

    4. Can I ensure my repayments don’t change?  

    Yes, if you want to ensure your repayments don’t change you can take out a Fixed Rate option for a term of 2, 3 or 5 years. This will ensure that for the period you choose your repayments won’t change when the variable rate changes. 

    5. Can I make extra repayments and access these funds if I need to?  

    Yes, in most cases you can but this depends on the product. See individual product features for full details. 

    6. What happens if my interest rate goes up or down?  

    If you have a variable rate loan and your rate goes up or down, we will recalculate your minimum repayment based on the new rate. We will write to you to advise your new repayment. If you have a fixed rate loan, your rate and repayments will not change during the period of the fixed rate agreement. 

    7. What if I need extra money?  

    You can apply for a loan increase which can be useful things such as a new car, home improvements, children’s education or a holiday, all at home loan interest rates. 

    Fees and conditions apply.

     

    1Funds to cover transaction costs and deposit required. Subject to loan serviceability. If for investment purposes, must hold 20% of the purchase price in equity in other residential real estate or income earning assets.

     

     

    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.