Whether a first-time buyer or self-employed, a RAMS home loan has flexible options to make the loan work better for you.
In the real world of upgrading or downsizing, many of us often find that perfect ‘next’ home before we’re able to ‘offload’ our existing one.
The solution could be a RAMS Bridging loan. It’s generally an interest-only loan that ‘tides you over’ enabling the purchase of a new property while you wait to sell or receive proceeds from the sale of your existing property.
FACT: RAMS does not charge a higher interest rate for bridging finance.
The amount of equity in your existing property determines the extent of bridging finance available. Interest on the new finance is calculated and capitalised for up to 9 months1, although if you haven’t sold by then, a 3-month extension may be possible, subject to normal lending criteria.
You continue making repayments as normal on the original loan only, until that property is sold.
This means monthly repayments remain the same even though you appear to have two properties and two loans.
NOTE: New purchase costs such as stamp duty and legal fees can be included in the bridging finance.
1. If your property hasn’t sold, RAMS offers an extension of 3 months then the loan is reassessed again at 12 months.
2 The maximum LVR includes settlement fees, application and legal fees.
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Mark and Maggie started to look at new homes to get a feel for the market. They were looking to downsize the family home and find a more compact town house or apartment closer to the city.
And sure enough, they found their ideal property soon after the search began. To compound the issue, it was due to go to auction in 3 weeks.
But they still hadn’t even talked to an agent about selling their current home. What to do?
First off, Mark and Maggie talked to an agent who arranged a valuation, and gave them a broad idea of what their property might reach at auction.
Mark and Maggie then met with a RAMS Home home Loan loan Specialist specialist to discuss what finance options could ‘tide them over’ should they be successful at auction.
With a bridging loan Mark and Maggie could secure the new property (while still owning, but organising the sale of, their current home).
You may be able to borrow more but Lender's mortgage insurance may be applicable.
This would be your new repayment if you unlock all of your useable equity.
You need to apply to increase your home loan in order to access useable equity. Applications are subject to RAMS credit criteria, and fees and charges apply.
We assume you do not redraw any amount.
We assume the interest rate does not change.
This calculator assumes any lump sum payments are made on the anniversary of your loan settlement date.
We assume the additional contributions are made at the same time and frequency as your regular repayment.
Length of month
All months are assumed to be of equal length. Actual amount of interest charged may vary depending on the number of days in each month.
Number of weeks and fortnights in a year
One year is assumed to be 52 weeks or 26 fortnights, meaning that for the purpose of the calculator a year has 364 days not 365 or 366.
Rounding of repayment amount
Repayment amounts are rounded to the nearest cent. However, the unrounded repayment amount may be used to ascertain the amount of interest payable at the yearly points within the graph and over the term of the loan. The final repayment may be a partial repayment, to reflect a loan balance of zero.
Amount of time saved
The time saved is shown in years and months, regardless of payment frequency and is rounded down.
Amount of Interest Saved
The amount of interest saved is not rounded. This amount is estimated from the amount of time saved.
We assume you do not withdraw any amount.
Interest rate and property value
We assume interest rate does not change, the property value is accurate and does not decrease.
All months are assumed to be of equal length. In reality, many loans accrue on a daily basis leading to a varying number of days' interest dependent on the number of days in the particular month.
Number of weeks & fortnights in a year
One year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days rather than the actual 365 or 366.
Rounding of amount of each repayment
In practice, repayments are rounded to at least the nearer cent. However the calculator uses the unrounded repayment to derive the amount of interest payable at points along the graph and in total over the full term of the loan. This assumption allows for a smooth graph and equal repayment amounts. Note that the final repayment after the increase in repayment amount will be a partial repayment as required to reduce the loan balance to zero.
Duty exemptions and concessions may be available that haven’t been taken into account in this estimate. For full conditions and eligibility requirements, please speak to your legal representative, or visit your local State / Territory Revenue Office website:
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