Scheduled maintenance: myRAMS will be unavailable on Thursday 17 January from 10:00pm to midnight (Sydney Time). We apologise for any inconvenience caused.
  • Line of credit for self-employed

    How RAMS helps 

    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.  

    And at RAMS we've made it less onerous for the self-employed to apply for a line of credit home loan by simplifying the application process and requiring less paperwork+. 

    RAMS was awarded 'Best Self-Employed Lender' at the 2018 and 2017 Australian Lending Awards, which highlight mortgage lenders who provide exceptional products and services.

    Things to consider:

     

    • As repayments are not required until the balance reaches the limit of a line of credit, 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

     

    Interest charged only on the outstanding loan balance, so no repayment required if under your approved credit limit

     
     

    Well suited to the ups and downs of cash flow; make payments in good times then redraw in quiet times (however, the line of credit needs to be repaid within the term of the loan)

     
     

    Borrow up to 80% of your property value and pay no lender’s mortgage insurance (funds to cover transaction costs required

     
    • Interest rates - owner occupier (interest only)

      Interest rate p.a.

      Comparison rate* p.a.

      Without Package LVR <=70% (Discounted)
      6.43
      n/a
      Without Package LVR 70%-80%
      6.68
      n/a

      Interest rates - investor (interest only)

      Interest rate p.a.

      Comparison rate* p.a.

      Without Package LVR <=70% (Discounted)
      6.43
      n/a
      Without Package LVR 70%-80%
      6.68
      n/a
    • *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.

      +The financials you need to support your application are a signed Borrower Certificate of Income Declaration form together with a satisfactory Accountant Declaration for amounts up to $1,000,000 and (if refinancing) statements for the last three months of the loan (s) being refinanced. If the amount is more than $1,000,000 then 12 months of BAS are required. If you manually lodge your BAS evidence of payment to the ATO is also required.

    • Minimum loan size

      $15,000

      Maximum loan size

      $1,500,000 if LVR <= 70%

      $1,000,000 if LVR is > 70%

      Owner Occupier Max LVR

      80%

      Investor Max LVR

      80%

      Redraw

      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

      Extra payments

      Not required if under the credit limit

      Deposit methods

      Direct debit, salary credit, BPAY®4, Bank@Post and myRAMS^

      Loan fixing

      No at origination

      Yes post settlement

      Fee - $295

      Loan switching

      First 2 yrs: convert to any Self employed product.

      After 2 yrs: convert to any product.

      Conversion fee - $295

      Repayment Holiday

      Yes

      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

      Quarterly (monthly available)

      RAMS Risk fee Payable by Customer

      N/A

      Capitalisation of Risk Fee up to

      N/A

       

    • DISCLAIMER:

      New loans only. Credit criteria, fees and changes 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 10 year IO option available for investment purposes only. 

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

      5 Not applicable

      6 Debit card not available to company borrowers. 

      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.  

      9Some institutions may charge a fee for use of their ATMs, payable in addition to any fee for transactions over free threshold.

      10Not applicable on this product.

      11Not 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. 

      +The  financials you need to support your application are a signed Borrower Certificate of Income Declaration form together with a satisfactory Accountant Declaration for amounts up to $1,000,000 and (if refinancing) statements for the last three months of the loan (s) being refinanced. If the amount is more than $1,000,000 then 12 months of BAS are required. If you manually lodge your BAS evidence of payment to the ATO is also required.

       

       

    • 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.