1. RAMS
  2. Home Loans
  3. Line of credit

  • Unlocking equity in your home to provide funds for investment purposes

  • Line of credit

    Whether due to extra repayments or a capital gain, chances are some equity may have built up in your home over time.   Accessing this equity, to have a transactional facility with a set credit limit, secured by a property, is what a line of credit home loan can offer, subject to being able to service the loan.  

    Things to consider: 

    • You need to prepare a clear exit strategy for its full repayment prior to the end of the loan term
    • Interest, fees and charges can be capitalised. However you will also need to ensure that the credit limit on the account is sufficient to allow for this capitalisation otherwise repayments will be required. Please note capitalising interest will mean you will reach your limit sooner than if you had been making regular interest only payments  

     

  • Three reasons to choose this loan

     

    Get easy access to funds – BPAY®, debit card, cheque or Bank@Post 

     
     

    Make no regular repayments if balance under your credit limit (but the line of credit needs to be repaid within the term of the loan) 

     
     

    Interest charged only on the outstanding loan balance.

     



    • Interest rates - owner occupier (interest only)

      Interest rate p.a.

      Comparison rate* p.a.

      5.93
      n/a

      Interest rates - investor (interest only)

      Interest rate p.a.

      Comparison rate* p.a.

      5.93
      n/a

    • Minimum loan size $15,000

      Maximum loan size

      		$1,000,000

      Owner Occupier Max LVR

      		80%

      Investor Max LVR

      		90%

      Redraw

      		Yes
      Yes - no minimum

      Loan Splitting

      		Yes
      Minimum $15,000

      Interest Only payments

      		Yes
      Yes12 and not required if under credit limit

      Interest Capitalisation

      		Yes

      Weekly/Fortnightly/Monthly Payments

      		Weekly: Yes
      Fortnightly: Yes
      Monthly: Yes
      Repayments are not required if you are under your credit limit.

      Extra payments

      		No minimum

      Deposit methods

      		Direct debit, salary credit, BPAY4, Bank@Post and myRAMS^

      Loan fixing

      		No at origination
      Yes post Settlement
      Fee - $295

      Loan switching

      		Convert to any Full Doc loan any time. Conversion Fee - $295

      Repayment Holiday

      		Not applicable

      Debit card & chequebook

      		Yes

      Value Advantage Package Eligibility

      		Yes

      ATM/EFTPOS & cheque access free transactions

      		Yes

      25 free transactions per month.

      After 25 transactions these fees apply9:

      $2.00 for ATM, $0.65 for EFTPOS and $0.90 for cheques.

      Statement frequency

      		Every 3 months (monthly available)

      Lenders Mortgage Insurance (LMI) premium payable by Customer

      		N/A10

      Capitalisation of LMI premium up to

      		N/A11

    • DISCLAIMER:

      New loans only. Credit criteria, fees and charges apply.

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

      1 Not applicable on this product. 

      2 Not applicable on this product. 

      3 Not applicable on this product. 

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

      5 Not applicable on this product. 

      6 Debit card not available to company borrowers. 

      7 Not applicable on this product.

      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 Some institutions may charge a fee for use of their ATMs, payable in addition to any fee for transactions over free threshold.

      10 Not applicable on this product. 

      11 Not applicable on this product.  

      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$20 per month
      Discharge fee $295 per loan account (plus legal and other associated costs incurred by us)
      Loan settlement fee $285


      • Take out a RAMS Value Advantage Package and save $$$ each year

        Take out a RAMS Value Advantage Package, and save $$$ each year with a discount on your home loan interest rate. More details


      • 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

    • Nick and Diane were looking at applying for a loan of $200,000 where the $130,000 would be for purchasing an investment property while $70,000 is for investing in a shares portfolio.  They had a loan with RAMS for over three years and knew they had equity in their home. Nick and Diane wanted to explore their options so they decided to talk to their RAMS Home Loan Specialist. 

      RAMS says....

      Nick and Diane’s RAMS Home Loans Specialist suggested an option they hadn’t considered – a RAMS Line of Credit.

      A RAMS Line of Credit works similarly to a credit card, in that interest is only charged on money that is drawn. As a RAMS Line of Credit would be secured against their home, Nick and Diane would be charged interest on the funds accessed from their Line of Credit, instead of paying higher interest rates that generally apply to credit cards.

      In addition, Nick and Diane can make payments, by accessing funds from their Line of Credit, through debit card, BPAY or internet transfer.