1. RAMS
  2. Home Loans
  3. Fixed rate classic home loan

  • Fixed Rate Classic home loan - security and peace of mind knowing what your repayments will be  

    Taking that plunge into your first property purchase need not be daunting, or difficult. To kick-start things, we’ve provided a handy checklist of 7 steps to home ownership to help with any questions you may have.

    And one option some first home buyers choose is a fixed rate home loan, with its inbuilt protection against rate changes during the fixed interest rate period. However if you pay more than $30,000 above your required minimum repayments during the fixed rate period, break costs apply, which can be substantial, so you need to consider whether a fixed rate home loan is the right option for you.

    If you don’t want to refix the loan again once the fixed rate period is over, the Fixed Rate Classic home loan will be automatically converted to the RAMS Essential home loan.

  • Three reasons to choose this loan

     

    Wide range of fixed rate periods: 1-5 years and 10 years

     
     

    Deposit up to an additional $30,000 during the fixed rate period 

     
     

    Redraw any additional repayments ($1,000 minimum, conditions and fees apply)

     

    • Interest rates - owner occupier (principal and interest)

      Term

      Interest rate p.a.

      Comparison
      rate* p.a.

      1 Yr

      2.89
      2.78

      2 Yr

      3.79
      2.96

      3 Yr

      4.29
      3.18

      4 Yr

      4.49
      3.38

      5 Yr

      4.69
      3.60

      10 Yr

      5.64
      4.92

      Interest rates - investor (principal and interest)

      Term

      Interest rate p.a.

      Comparison
      rate* p.a.

      1 Yr

      3.09
      3.07

      2 Yr

      3.99
      3.24

      3 Yr

      4.49
      3.46

      4 Yr

      4.79
      3.69

      5 Yr

      4.89
      3.87

      10 Yr

      5.89
      5.20

    • *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. 

      We will apply the fixed rate that is available at the loan settlement date or the date the fixed rate period commences, unless the customer locks a fixed rate in on the loan using our Fixed Rate Lock-in feature (conditions apply). The Fixed Rate Lock-in fee is 0.15% of the fixed loan amount. At the end of the fixed rate period the interest rate will convert to the applicable variable home loan rate.


      Fixed rate loans have a limited prepayment threshold.  If you want to make repayments greater than the maximum amount specified by RAMS or you break the fixed rate period, you may be required to pay break costs, which can be considerable.  If interest rates drop while your interest rate is fixed, you will not receive the benefit of the reduced 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

      Minimum $1,000

      $10 per redraw

      Loan Splitting

      		Yes

      Yes

      Minimum $15,000

      Interest Only payments

      		Yes

      1 to 5 years and 10 year option3,12

      Interest Capitalisation

      		No

      Weekly/Fortnightly/Monthly Payments

      		Weekly: Yes
      Fortnightly: Yes
      Monthly: Yes

      Extra payments

      		Up to a total of $30,000 during the fixed rate period

      Deposit methods

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

      Loan fixing

      		Yes- at Origination
      No- Post settlement
      Fixed Rate Lock-In Fee5: 0.15% of the credit limit available at application

      Loan switching

      		Fixed rate at settlement automatically converts to Full Feature Home Loan

      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%10

      Capitalisation of LMI premium up to

      95% if principal and interest loan and security property is owner occupied11

      95% where construction option is used with an interest only period of 12 months and security property is owner occupied11

       

    • DISCLAIMER:

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

      1 Maximum LVR on purchase price (or valuation if lower) of up to 95% for principal and interest (P&I) loans and interest only (IO) construction loans with an interest only period of 12 months.  Maximum LVR on purchase price (or valuation if lower) of up to 80% 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.  

      2 Maximum 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 80% on purchase price (or valuation if lower) for loans with interest only (IO) repayments and all construction loans.  Funds to cover transaction costs required.    

      3 10 year IO option available for investment purposes only.

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

      5 Lock In Fee Rules: For a Single Drawdown Loan, Lock In is applicable for a period of 90 days from the date the application is received by RAMS Origination. 

      6 Not applicable on this product. 

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

      8 Value Advantage Package available on selected loans for customer with total RAMS eligible borrowings of $150,000 or more. Refer to the Value Advantage Package Brochure for Terms and Conditions. 

       9 Not applicable on this product. 

      10 The 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.

      11 5% deposit and funds to cover transaction costs are also required. Not available on some property types, loan purposes or locations and other conditions apply.   

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

      Value Advantage Package Conditions apply and are available at rams.com.au. Available for customers with total RAMS borrowings of $150,000 or more. No discounts apply where total customer borrowings is less than $150,000, and no interest rate discounts apply to an eligible loan while the interest rate is fixed. Total Customer Borrowings is calculated as the total credit limit for each existing RAMS home loan and any new RAMS home loan being applied for, however the discount only applies to the new eligible loan. There is no limit on the number of new eligible variable rate loans within a RAMS Value Advantage Package that can receive an interest rate discount. Annual fee, currently $375, applies. Unless we tell you otherwise, Package benefits cannot be taken in conjunction with, or in addition to other special offers, negotiated rates or discounts.

       

    • Application fee Fees charged to cover or partially cover the lender's costs of processing a loan approval for a home buyer$595
      Valuation fee

      First valuation is free!

      $220 for each additional valuation

      Account keeping fee$10 per month
      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


      • A discounted rate & potential tax benefits

        Investors need flexible options to make tax-effective decisions. RAMS Interest Only In Advance Option allows property investors with a fixed rate loan to prepay 12 months interest and receive a discount off the fixed interest rate.

        The Interest Only In Advance Option is available to property investors with a RAMS fixed rate period of up to 5 years, and where interest-only repayments have been chosen.

        More details

    • Chris was looking to buy his first property and he found the perfect inner city apartment in Melbourne for around $500,000.

      Over the years he managed to save a 20% deposit and with interest rates in a low phase of the cycle, he wanted the certainty and security of knowing what his repayments would be during the fixed interest rate period. Chris was also looking for some flexibility to make some extra payments if he could afford to.

      RAMS says …

      Chris was delighted to find that a RAMS Fixed Rate Classic Home Loan had all the features he was looking for in a home loan including a fixed interest rate and a broad range of periods to choose from.

      It also allowed him to deposit up to $30,000 extra during the fixed rate period, but also have the ability to draw on this money if he needed to. 

      Other loan features like direct salary credit and repayments via BPAY® made managing the loan straight-forward.

      So after having a chat with his local RAMS home loan specialist, Chris also decided to split the loan between a fixed rate for 2 years and a variable rate as part of his overall loan.

      It’s a ‘best of both worlds’ scenario as he now has security against potential rising rates, without feeling stuck if rates shifted down, with the added ability to make additional repayments if he comes across extra funds.