RAMS Home Loans FAQ
RAMS Home Loans FAQs
In order to assist customers with any queries they have, RAMS Home Loans are happy to answer any questions you have. Here are some of the more common questions asked by borrowers, and the answers you’re looking for.
Q: I’ve never heard of RAMS Home Loans. Who are they?
RAMS Home Loans is wholly owned by the Westpac Banking Corporation, one of Australia’s largest banks, and one of the most secure banks in the world. However, every single RAMS Home Loans Centre is independently owned by highly trained local franchisees
Q: Am I eligible to apply for a RAMS Home Loan?
In order to qualify for a RAMS Home Loan, you must be older than 18 at the time of application. You will also need to be a permanent Australian resident. As long as you can meet these requirements, you are able to apply.
However, there are certain lending criteria you must adhere by to be approved for your home loan application. These will include your previous credit history, your employment status and your income level.
Q: How long will it take to get an approval for a home loan?
Most customers should easily receive a conditional approval within 24-48 hours of submitting the completed and signed application form. A conditional approval can be used as a pre-approval.
Receiving a full approval is heavily dependent on meeting all the conditions set out in the original conditional approval. In most cases, those conditions include:
- Supplying all the supporting documentation for the application
- Providing a signed Contract of Sale
- RAMS ordering a valuation that shows an acceptable value for the security property
- Approval from the lender’s mortgage insurer (for any full doc applications where the loan exceeds 80% of the property value)
Once all those conditions have been met, a full approval (or formal approval) will be issued. Mortgage documents will be sent out for you to sign and return, and settlement of your property purchase will follow shortly after.
Q: How long does a pre-approval last before it’s not valid?
Your pre-approval will expire in three months from the date it was issued. If you apply for a pre-approval for a home loan and can’t find anything you want to buy in this time, your pre-approval will expire.
Q: How much can I borrow?
The amount you can borrow will be assessed based on certain lending criteria. This can include your taxable income, your current liabilities, and the amount of equity or level of deposit you have available.
For most loan types, you can borrow up to 95% of the value of the property being used as security, as long as you are also able to meet the repayment obligations for this loan amount.
You can see an estimate for the amount you’re able to borrow by using a RAMS borrowing capacity calculator.
Q: Can I borrow money if I’m self-employed?
The Low Doc home loan range is specifically designed to suit self-employed borrowers. You won’t be required to supply mountains of paperwork, tax returns and financial documents. Instead, you simply need to fill in an income declaration form and provide a letter from your accountant. These forms of verification should demonstrate that you have the capacity to afford your monthly payments in a timely manner without suffering financial hardship on your current income.
Self-employed borrowers also need to supply a list of current assets and liabilities.
Q: Do I need to save a deposit?
For most regular home loan types with RAMS, you must show that you have saved 5% of the purchase price of the house. Your savings will be verified by showing bank statements that record money being consistently saved over a period of 6 months. This shows the bank that your savings are genuinely yours, and not accessed through other means.
Other forms of genuine savings include existing equity in a property, or ownership of shares.
However, there is a way for some borrowers to purchase a home using a ‘Fast Track’ no deposit option.
Q: How does the No Deposit Home Loan “Fast Track” work?
If you have a parent willing to act as a guarantor for your home loan, you could be able to borrow the entire purchase price, plus the associated fees and charges, on your home loan.
This means you won’t need to save a deposit at all. Your parents simply guarantee the amount of money you need to complete your purchase. RAMS Home Loans will register a mortgage over your parent’s property for this amount of money, but your parents won’t be liable for your entire mortgage. They are only liable for the amount of money they are guaranteeing to you for your purchase.
In some cases, you could be able to consolidate your other debts and borrow enough to complete renovations to the home you’re buying at the same time. RAMS will offer a loan amount up to 120% of the property value for this purpose. This lets you pay off personal loans or credit cards so you can focus on paying your mortgage payments. It also gives you access to the money you need to renovate an older home to the way you want it. However, lending criteria will apply.
Q: What documents should I provide with my Home Loan application?
Along with your signed RAMS application form, you must supply ID verification. This should add up to 100 points of ID, which can include driver’s licence or photo ID, passport or birth certificate, Medicare card, and valid credit card.
You will also need to provide verification of your income. This can include documents such as pay slips, tax assessment notice, letter from your employer or a group certificate. Other forms of supporting income evidence may also be required. This could be Centrelink statements for Family Allowance benefits, rental income statements, or any other income received into the household.
For customers who are refinancing an existing home loan over to RAMS, you must supply at least three months of statements from your existing mortgage, showing good repayment conduct. Requirement to provide a Rates Notice for the security property is possible.
Customers who are purchasing a property will need to submit a signed, executed Contract of sale. If you are building a new home, a signed builder’s contract, along with engineering report for the foundation/footings and any inclusions will need to be included.
There are some borrowers who may need to supply additional information, depending on assessment criteria.
However, Loc Doc borrowers may need to provide only an Income Declaration form and a letter from an accountant to verify income.
The easiest way to check the full list of documentation you need to supply is to speak to a RAMS Home Loans lending representative.
Q: Can I use my home loan to construct a new house?
RAMS does offer a construction option on most of its full doc home loans. Be aware that the finance process for construction is a little different to purchasing an existing house.
The documentation required for your construction loan is also a little more involved than buying a new home. However, don’t let this put you off. The documents required are usually supplied as a ‘building package’ from your builder, containing most of the information the bank needs to complete your finance application.
For construction, progressively drawn payments may apply. This will mean your construction loan gets drawn down in stages, as the various stages of your new home construction are completed by your builder.
Q: Can I borrow from RAMS to buy an investment property?
Yes, you are able to borrow funds to purchase an investment property. As long as the property being used for security is acceptable to RAMS, and the amount borrowed is within lending policy, this is perfectly acceptable.
Q: Can I borrow for business purposes?
If you wish to borrow funds to be used for business purposes, you must use a residential property as security.
Q: How do I access my RAMS Home Loan?
Customers are able to access and view their home loan account details using the secure online banking platform ‘myRAMS’ at any time. If you don’t currently have access to ‘myRAMS’, you can register for your own secure account at http://www.rams.com.au/myrams/ .
Q: Can I change my repayment times to weekly or fortnightly?
With most RAMS Home Loans mortgages, you have the flexibility of changing your payments to be paid weekly or fortnightly, instead of monthly, if this suits your pay schedule better. Your repayments can be direct debited out of your existing transaction account.
Q: Can my payroll person at work pay my salary straight into my home loan?
Yes. When you receive your mortgage documents, you will see a Wage Instruction form included in the pack. Hand the form to your payroll master or your employer. They can organise a direct salary credit for your wages to be paid straight into your home loan easily this way.
Q: Can make extra repayments off my home loan and how do I do this?
Yes, you can make extra repayments off your home loan balance.
Customers have several options available for making extra repayments into their mortgage account. These include:
Direct Debit: you are able to nominate an amount you want debited on top of your normal minimum repayment.
Direct Credit: you can easily transfer extra funds out of your normal transaction account and into your home loan account electronically. You can find your RAMS home loan BSB number and account number on your statement, on your original mortgage documents, or in your online banking account.
Deposit a Cheque: you are able to deposit cheques into your account using the Bank@Post service at Australia Post, or by sending your cheque directly to RAMS along with your account details.
BPAY: You are able to make BPAY payments into your home loan from another account. Remember that BPAY payments take 2-3 days to clear. If your wish is to pay your regular repayments this way, ensure you get your payments in a couple of days early to account for this delay in clearing your funds.
Keep in mind that fixed rate mortgages may have an imposed limit on the amount of extra cash you can pay into your account during the fixed term. Always check the product specifications for your particular home loan type.
Q: Can I withdraw the extra payments I’ve made if I need the cash?
RAMS Home Loans do offer a redraw facility that allows you to withdraw any extra payments you have made into your mortgage account. Redraw minimum limits may apply, and a redraw fee may also be charged, depending on your mortgage type.
Always check the documentation of your home loan for any fees and conditions that may apply to your individual loan type.
Q: Where do I send a cheque for RAMS to pay into my mortgage?
If you wish to send a cheque directly to RAMS to be deposited into your mortgage, you can post your cheque to:
RAMS Financial Group Pty Ltd
Locked Bag 5001
Concord West
NSW 2138
Don’t forget to include your name and account number so RAMS know which account to deposit the cheque into.
Q: How do I use Bank@Post to deposit cash or cheques?
The Bank@Post option is available through any Australia Post outlet where you see the Bank@Post logo displayed.
You will need to fill out a deposit form and take this up to the counter. The Australia Post representative will ask you to swipe your debit card and enter your secure PIN. This will enable the deposit to be put directly into your account. When the transaction is complete, you will receive a receipt to verify your deposit amount.
Q: Can I deposit a cheque at a Westpac Bank branch to pay into my RAMS home loan?
While RAMS Home Loans is a subsidiary of the Westpac Banking Corporation, the possibility of depositing cheques with Westpac for credit into a RAMS Home Loan is not available.
In order to deposit the proceeds from a cheque into your home loan, simply deposit the cheque into your regular transaction account. When that cheque clears, you can then transfer the money over to your home loan account electronically.
You also have the option of depositing cash or cheques using the Bank@Post system at Australia Post outlets.
Q: How can I access my money?
Depending on the home loan type you’ve chosen, you may be able to redraw any extra repayments you’ve made. You are allowed up to 25 free transactions each month.
You can access your money using your RAMS debit card. Your debit card can be used at any Westpac, St.George, Bank of Melbourne or BankSA ATM without incurring any fees.
Your debit card can also be used to withdraw cash over the counter at any Australia Post outlet showing the Bank@Post symbol.
You may also request to have a cheque book attached to your account to pay for purchases.
Q: Can I pay my bills directly from my home loan account?
You are able have a payment system by direct debit out of your home loan account. It’s your responsibility to check that you have sufficient funds in the home loan account to honour the direct debit payments each month. You can download the direct debit payment form from the RAMS website: http://www.rams.com.au/
You may also need to check whether your credit card company will accept direct debit payments.
Q: Can I apply for a credit card with RAMS?
RAMS Home Loans doesn’t offer credit cards at this time. However, you can apply for a debit card attached to your mortgage account.
Q: Can I split my home loan between variable and fixed rates?
Yes, RAMS Home Loans will allow you to split your loan so that a portion remains on a variable rate and the remaining portion is on a fixed rate. This is an excellent way to protect against rising interest rates, but still have access to the higher flexibility of a variable rate loan. Minimum loan amounts will apply, so be sure you have checked how much you need to leave on each portion.
Q: Can I transport my existing RAMS Home Loan over to buy a new property?
RAMS Home Loans do offer a portability option. This means your existing loan does not need to be paid out in order for you to sell one home and purchase another. As long as settlement of both properties occurs on the same day, your loan account will remain intact. This will mean the settlement on the sale of your old property needs to happen on the same say as the settlement for your new property.
Arranging for a loan to be transported can sometimes be tricky with coordination, but check with your RAMS Home Loan representative. To make this work smoothly, your home loan balance will not increase as a result of the sale and purchase of the new property. This way, the existing loan will just have the security property beneath it altered to reflect the new property now being used as security.
Transportable loans are a good way to save money on application fees, exit fees, early repayment fees, or other charges that may arise from paying out one mortgage and applying for another. It also removes the hassle of applying for a new home loan.
Q: Can I switch over from a variable rate and lock into a fixed rate?
If you already have a variable rate loan, it’s easy to switch over to a fixed rate home loan. RAMS offers fixed rate terms of 1, 2, 3, 4, 5, or 10 years. Fixing your loan is a great way to keep your budget stable and stop your repayments from changing in the first few years of the mortgage. You also protect yourself against rising interest rates.
Some customers may need to pay a small fee to switch their loan product over to a fixed rate loan. However, when you consider the safety and peace of mind offered by fixing in the interest rate before rates begin to rise, this could be easily worth the cost.
Remember that fixed rate mortgages may incur break fees if you pay out your loan during the fixed rate term. This could mean refinancing or selling your home or winning the lotto.
As a result of this your home loan being still in a fixed rate period, you may incur some break fees. If you know you’re likely to sell your home in a few years, choose a fixed shorter fixed rate term.
Q: Can I miss some of my payments if I’m having financial difficulty?
A repayment holiday option is available to any RAMS Home Loans borrower who has made extra repayments into a home loan account. Your repayment holiday will last only for as long as the extra cash in the account will cover the repayment amounts due.
If you have no extra repayments in your account and you have only been paying the bare minimum payment due, you may not be able to take a repayment holiday. You may need to consider whether you qualify for the Lifestyle Option instead.
Q: What if I need more help making my home loan repayments?
RAMS Home Loans do offer a Lifestyle Option to customers facing altered financial conditions or other financial challenges that make it difficult for them to afford their mortgage repayments.
In the event of an illness or injury where you can’t work for a period of time, or in the event of being retrenched, you can apply to RAMS to have your mortgage repayments reduced by up to 50%.
Customers wishing to reduce their payments during maternity leave or paternity leave may also apply for the same Lifestyle Option.
Paying only 50% of your normal mortgage payment is designed to help you get back in control of your financial situation. This could mean giving you time to recover from an illness or injury. It could mean giving you time to find a new job after being retrenched. It may also mean giving you the freedom to spend time with your family after the birth of a new baby.
In order to be approved for a reduction in mortgage payments, borrowers will have to supply supporting documentation to verify their claim. This could be medical reports, evidence of retrenchment, or a letter showing approved maternity leave from an employer.
During the time the home loan repayments are reduced, the extra money owing and interest charged will not be added to the existing loan balance. This means your debt won’t increase as a result. Instead, RAMS Home Loans will simply extend the loan term by a few months to cover the difference.
Q: Why are my interest payments different from month to month? How are interest payments calculated?
Your interest payments are calculated at the end of every day on the closing balance of your mortgage. At the end of the month, your total interest charges are shown as a single figure and this is the total interest payable. This is shown on your statement and also in your online banking account.
As your interest is calculated on your balance daily, you have the opportunity to reduce the interest charged very easily. You can do this in several ways.
- Pay more frequently. If you make your payments weekly or fortnightly, instead of monthly, you will be reducing your balance throughout the month.
- Pay any extra cash you have into your mortgage, further reducing your balance.
- Make extra repayments with each normal payment you make. You can nominate a voluntary amount you want to pay on top of the minimum amount. Even rounding your payment up a couple of dollars each fortnight can help to reduce your balance faster.
As you have a lower balance, the interest charged is also reduced. This has the potential to save you thousands of dollars over the life of the loan. You’ll also repay your mortgage faster.
Q: Where can I find a RAMS branch?
There are more than 70 RAMS Home Loan centres around Australia, with more opening all the time, in metropolitan areas and in regional areas, too.
You can find your nearest RAMS Home Loan centre here: http://www.rams.com.au/contact-us/find-a-home-loan-centre/
RAMS Home Loan Centres are open every day, so you don’t need to worry about getting to a branch during restrictive banking hours. Weekends are just fine. If you prefer, you can make an appointment for a RAMS lending representative to visit you in your home to discuss your home loan needs.
Related posts:
- RAMS Fixed Rate Home Loan
- RAMS Low Rate Home Loan
- RAMS Fixed Rate
- RAMS Self-Employed Low Doc Fixed Rate Home Loan
- RAMS Fixed Rate Pro Pack
- RAMS Home Loans Self-Employed Low Doc Home Loan
- RAMS standard variable home loan
- RAMS Investor Home Loan
- RAMS Basic Loan
- RAMS Rate Relief Home Loan
Top Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Loans.com.au - Dream Catcher | A home loan offer with a $0 application fee and one of the lowest available home loan interest rates. | 5.85% | 6.21% | $0 / $375 | 80% | $50,000 / $750,000 |
 
|
 Bankwest Online Home Loan | A low interest rate home loan with a $0 application fee and ongoing maintenance fees. This offer is exclusively available by applying online. | 5.97% | 5.97% | $0 / $0 | 80% | $100,000 / $1,000,000 |
|
 Illawarra Home Loans Bank Beater Home Loan | A low variable rate, beaten down even further by 0.05% p.a. after 5 years. | 6.07% | 6.35% | $0 / $345 | 90% | $250,000 / $1,000,000 |
|
 State Custodians Mortgage Company Standard Variable Offset Loan | Awarded Mortgage of the Year 2012 – this multi-award winner features 100% offset and a loyalty 0.25% rate drop after 5 years. | 6.02% | 6.23% | $0 / $345 | 95% | $150,000 / $1,000,000 |
|
Ask A Question