1. RAMS
  2. Home Loans
  3. Essential home loan

  • A simple, clear to understand home loan to help you with one of the biggest purchases in life.

  • RAMS Essential Home Loan

    • Here is a home loan that does just that, to get you started on your home buying journey.
    • Whether you’re a first home buyer, owner-occupier or investor, the RAMS Essential Home Loan has basic features that cater for the important things when buying a property.

  • Three reasons to choose this loan

     

    Personal expertise from our home loan specialists, to help you every step of the way

     
     

    A simple loan with a low variable rate 

     
     

    Flexibility to make extra repayments and redraw funds should you need to

     



    • Interest rates - owner occupier (principal and interest)

      Interest rate p.a.

      Comparison rate* p.a.

      2.64
      2.70

      Interest rates - investor (principal and interest)

      Interest rate p.a.

      Comparison rate* p.a.

      3.04
      3.10

    • Variable rate - Principal and Interest

      Owner Occupier - Variable rate includes 1.09% p.a discount^ Based on your Loan to Value Ratio being from 70%, up to 80%

      Investor - Variable rate includes 1.19% p.a discount+ Based on your Loan to Value Ratio being from 70%, up to 80%

    • Discounts

      Owner Occupier:

      ^Essential Home Loan Promotional Rate: This offer is only available for new Owner Occupier Essential Home Loan applications with Principal and Interest repayments received from 25 July 2020. Discount applies to our Essential Home Loan offer for the life of the loan. This offer may be varied or withdrawn at any time. Interest rates subject to change.

      Investor:

      + Essential Home Loan Promotional Rate: This offer is only available for new Investment Essential Home Loan applications with Principal and Interest repayments received from 2 October 2020. Discount applies to our Essential Home Loan offer for the life of the loan. This offer may be varied or withdrawn at any time. Interest rates subject to change.

       

    • DISCLAIMER:

      *Please note: The comparison rate for the relevant product is based on a loan of $150,000 over a term of 25 years. WARNING: This comparison rate is true only for examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

    • Minimum loan size $15,000

      Maximum loan size

      		No maximum

      Owner Occupier Max LVR

      		95%1 Principal and interest loan
      95%1 Construction loan with an interest only period of 24 months
      80%1 Interest only loan or construction loan with an interest only period greater than 24 months

      Investor Max LVR

      90% loans with principal and interest repayments2

      90% loans with interest only repayments and all construction loans2

      Redraw

      		Yes
      No minimum

      Loan Splitting

      		Yes
      Minimum $15,000

      Interest Only payments

      		Yes

      1-5 year and 10 year option 3, 7, 12

      Interest Capitalisation

      		No

      Weekly/Fortnightly/Monthly Payments

      		Weekly: Yes
      Fortnightly: Yes
      Monthly: Yes

      Extra payments

      		Yes, no minimum

      Deposit methods

      		Direct Credit, Direct Debit, Salary Credit, BPAY®4 and myRAMS^

      Loan fixing

      No - at origination
      Yes - post settlement
      Fee- $295
      $20 fixed rate servicing fee for fixed rate portions of the loan during the fixed rate period

      Loan switching

      Convert to any Full Doc loan at any time (except Line of Credit).  Convert to Line of Credit after two years. 

      Conversion fee - $295

      Repayment Holiday

      		Yes

      Debit card & chequebook

      		No

      Value Advantage Package Eligibility

      		No

      ATM/EFTPOS & cheque access free transactions

      		No

      Statement frequency

      		Every 6 months

      Lenders Mortgage Insurance (LMI) premium payable by Customer

      When LVR is over 80%

      Capitalisation of LMI premium up to

      Maximum LVR 1, 2

    • DISCLAIMER:

      New loans only. Fees, conditions and lending criteria apply.  Subject to RAMS normal lending criteria.

      ^myRAMS is not available to Companies and Trusts and is subject to systems availability.

      1Maximum LVR of up to 95% on purchase price (or valuation if lower) for principal and interest (P&I) loans and interest only (IO) construction loans with an interest only period of 12 months.  Maximum LVR of up to 80% on purchase price (or valuation if lower) for non-construction interest only loans or construction loans with an interest only period greater than 12 months. Funds to cover transaction costs required. Lenders mortgage insurance applies when LVR is >80%. If LVR >85%, evidence of 5% genuine savings required.  Maximum LVRs are inclusive of any capitalised LMI. 

      2Maximum LVR of up to 90% on purchase price (or valuation if lower) for loans with principal and interest (P&I) repayments.  Maximum LVR of up to 90% on purchase price (or valuation if lower) for loans with interest only (IO) repayments and all construction loans.  Funds to cover transaction costs required. Maximum LVRs are inclusive of any capitalisation of LMI.   

      310 year IO option available for investment purposes only. 

      4® Registered to BPAY Pty Ltd ABN 69 079 137 518.  

      5Not applicable on this product.

      6Not applicable on this product. 

      7Switch to interest only repayments is not permitted in the first 12 months of the loan.

      8Not applicable on this product. 

      9Not applicable on this product. 

      10The RAMS Risk Fee is charged because of the increased risk to us due to the high LVR. Whether a Lender's Mortgage Insurance premium or a RAMS Risk Fee is payable will depend on the individual application. 

      115% deposit and funds to cover transaction costs are also required. Not available on some property types, loan purposes or locations and other conditions apply.   

      12Not available for the purpose of owner occupied refinance, debt consolidation or equity release. 

       

    • Application fee Fees charged to cover or partially cover the lender's costs of processing a loan approval for a home buyer

      $595 

      Fees charged to cover or partially cover the lender's costs of processing a loan approval for an applicant

      Valuation fee

      First valuation is free!

      $220 for each additional valuation.

      Account keeping feeNil ($10 fixed rate servicing fee for fixed rate portions of the loan during the fixed rate period)
      Discharge fee $295 per loan account (plus legal and other associated costs incurred by us)
      Loan settlement fee $285


      • Arrange a deposit without touching your savings

        Obtaining a Deposit Bond through RAMS could help you secure your dream home by providing you with an alternative to finding a cash deposit before settlement. A Deposit Bond acts as a guarantee to the vendor, allowing the purchaser to pay the deposit amount (together with the balance of the purchase price) on the day of settlement (rather than funding a deposit up front/on exchange). In addition, a deposit bond could also save you the costs of obtaining bridging finance in order to pay your deposit. More details


      • You could buy your first home sooner and save on mortgage insurance

        The support of family is priceless and when they’re happy to act as guarantors on your property purchase, they could help you buy your home quicker than you thought and save you thousands in mortgage insurance. More details


      • Looking to build or renovate?

        For customers who intend to purchase land and build a new home, RAMS has developed a feature called 'RAMS Construction Option' which can be adopted on many RAMS full and low doc home loans. More details


      • Bridge the gap between your old and new property

        RAMS Bridging Option could be just what you need to assist with the purchase of a new property whilst you’re in the process of selling an existing property. It eases the strain of purchasing your new property by bridging the finance gap whilst you wait to receive proceeds from the sale of your existing property. More details

    • Sarah has seen several of her friends finally buy their first home. Motivated by them taking the plunge, she is now ready to use her savings for a deposit to buy her dream home.

      Through her search, she has found a two bedroom unit for just under $650,000 in the southern suburbs of Sydney – close to rail and bus connections – making for an easy commute into the city in less than 45 minutes.

      She has a house deposit of 10% of the purchase price ready to go. As this is Sarah’s first home, she wasn’t looking for all the bells and whistles but does want a loan that allows early repayments if she comes across some extra funds. She doesn’t need an offset feature or the ability to reduce repayments while on parental leave. Above all, she is looking for a loan with a competitive rate and clear explanation of the fees involved with the loan. 

      RAMS says …

      Through Sarah’s shopping around, she found that RAMS offered a low variable rate home loan.

      When she spoke to a RAMS Home Loan Specialist, she learnt that the loan catered to all her basic needs to purchase her dream home and that she had the flexibility to pay extra and also redraw on the extra funds when, and if she needs to access it. 

      It was this flexibility; along with the expertise of the RAMS Home Loan Specialist that convinced Sarah that RAMS could help her with the purchase of her dream home.