• Self-employed fixed rate home loan

    How RAMS help the self-employed

    Being self-employed is not for everyone. It takes boldness and commitment, and a certain amount of risk management to make a go of it.  So where does that leave self-employed people, contractors and tradies looking for a mortgage when most home loans seem designed for PAYG people? With RAMS, that’s where. 

    Let’s start with a simple application process requiring less paperwork+, and take it from there. 

    Deposit up to an additional $30,000 during the fixed rate period without incurring fixed rate break costs. You can then redraw any additional repayments to help deal with inconsistent cash flow ($1,000 minimum, fees apply).

    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 consider whether a fixed rate home loan is the right option for you.

  • Three reasons to choose this loan

     

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

     
     

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

     
     

    Deposit up to an additional $30,000 during the fixed rate period without incurring fixed rate break costs.

     
    • Interest rates - owner occupier

      Term

      Interest rate p.a.

      Comparison
      rate* p.a.

      1 Yr

      4.69
      5.62

      2 Yr

      4.19
      5.46

      3 Yr

      4.29
      5.39

      4 Yr

      4.99
      5.55

      5 Yr

      4.49
      5.31

      10 Yr

      6.09
      6.18

      Interest rates - investor

      Term

      Interest rate p.a.

      Comparison
      rate* p.a.

      1 Yr

      4.94
      5.87

      2 Yr

      4.29
      5.68

      3 Yr

      4.44
      5.60

      4 Yr

      5.24
      5.79

      5 Yr

      4.69
      5.53

      10 Yr

      6.34
      6.43
    • 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

      $1,500,000 if LVR equal to or less than 70%

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

      Owner Occupier Max LVR

      (Refer Credit Guidlines for full details)

      80%

      Investor Max LVR

      (Refer Credit Guidlines for full details)

      80%

      Redraw

      Yes

      Minimum of $1,000 per redraw

      $10 per redraw

      Loan Splitting

      Yes
      Minimum of $15,000

      Interest Only payments

      Yes
      1 to 5 year fixed rates and the 10 year3option

      Interest Capitalisation

      Yes

      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 methods6

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

      Loan fixing

      Yes - At origination

      No - Post settlement

      Fixed Rate Lock-in Fee5: of 0.15% of the Credit Limit available at application

      Loan switching

      Fixed Rate at settlement automatically converts to a Self-Employed Home Loan (which can be refixed)

      Repayment Holiday

      Yes

      Debit card10 & chequebook

      No

      Tier 2 Genuine Savings Option#

      No

      Value Advantage Package Eligibility3

      Yes

      ATM11/EFTPOS & cheque access free transactions

      No

      Statement frequency

      Every six months

      RAMS Risk fee Payable by Customer

      N/A

      Capitalisation of Risk Fee up to

      N/A
    • DISCLAIMER:

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

      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.

      ^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 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 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 Not applicable on this product. 10 Not applicable on this product.11 Not applicable on this product. 

      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 $750,000 and (if refinancing) statements for the last six months of the loan (s) being refinanced. If the amount is more than $750,000 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
      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


      • 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

    • Kathryn is self-employed and her business has been growing. After talking to her accountant and financial planner, she decided the time was right to invest in property.  Between her savings and the equity she has in her own home, and knowing what the typical purchase costs might be, Kathryn felt comfortable that a unit around $400,000 would be more than manageable. 
       
      While she has a 20% deposit and funds to cover transaction costs, Kathryn was concerned about future interest rate rises, which is why the certainty of fixed repayments at a competitive interest rate appeals.
       
      And just as importantly, she didn’t want the frustration of a drawn-out application process, just because she was self-employed. 

      RAMS says …  

      After speaking to a RAMS home loan  specialist, Kathryn opted for the RAMS Self-employed Fixed Rate home loan. 
       
      She could borrow up to 80% of the purchase price (or valuation if lower) and refinance her existing loan to free up equity to cover transaction costs, while still keeping repayments under control.  

      Flexibility with built-in peace of mind  

      And being self-employed, Kathryn liked the ability to make extra repayments to reduce her loan faster (up to $30,000 during the fixed rate period without incurring any break cost).  She also has the option to redraw if her cash flow slows; a crucial consideration for the self-employed.
       
      By choosing a fixed rate period of five years, Kathryn knew what her repayments were for that period.
       
      But most of all, she liked how easy it was to apply, so she could start looking at properties sooner.