Rams Home Loans Self-Employed Low Doc Line of Credit

Scenario

Let’s look at a hypothetical situation. Say we have a gentleman who is looking to buy a home. We’ll call him Ben. Ben is self-employed and he is interested in expanding his portfolio in investment properties. He is interested in borrowing around $150,000 to buy a property and also wants an additional $60,000 that he can use to put down on another property. Ben also wants to manage all of his accounts in one place.

This is what we think he should do:

Ben could apply for the RAM’s Low Doc Line of Credit Home Loan for the Self-Employed . The interest rate is terrific and he could be approved with a credit limit of over $200,000. He could draw down the $150,000 he wants for the house right away and he could opt to pay only interest on the amount he borrowed until he is ready to take out the additional. If he stays below the credit limits then he does need to make the usual repayments at this time.

Details On The Low Doc Line of Credit

Here is a breakdown of the details you will find with this product.

• Interest rate – You receive 7.21% if your LVR is over 60% and 7.38% if your LVR is below 60%.
• Rate after fees, etc. – Here is the rate if you take into consideration the fees and other sundry charges associated with the loan – 8.15% if your LVR is over 60% and 7.90% if your LVR is over 60%.
• Minimum loan amount – The minimum amount you can apply for is $15,000.
• Maximum loan amount – The most you can have is $1,500,000 if your LVR is under 60% and $1,000,000 if your LVR is under 60%.
• Maximum for Owner Occupier – If you are the Owner Occupier of the property, your LVR maximum is 80%.
• Maximum for Investor – If you are an investor, your LVR maximum is 80%.
• Minimum redraw – There is no minimum for redraws.
• Splitting the Loan – If you want to split your loan, the minimum amount is $15,000.
• Interest Only repayments – You have the option to pay only interest. This term lasts typically from 5 to 10 years depending on the term of your loan.
• Interest Capitalisation – Yes, interest is capitalised.
• Repayment schedule – You can choose how often you want to pay. For example, you can make weekly, fortnightly or monthly payments. You decide which suits you best.
• Switch Loans? – If you want to switch your loan over to another product, you can do that. During the first year of the loan, you can switch over to any other low-doc product. After the second year, you are able to switch to any other product.
• Statements – Your statements are sent out quarterly. However, if you want monthly statements, you can arrange to have them sent monthly.
• Repayment Break – If you have paid ahead on your loan, you are able to take a break or “holiday” from your repayments until you are no longer ahead.

Associated Fees

All loans come with some fees. The importance is disclosing them so you know what you are getting into. Here are the following fees you will find with these loans.

• Application Fee – $595 and this covers the processing of your loan on the lender’s side.
• Fee for Valuation – Your first valuation will be provided at no cost to you! For any additional, you will be charged $150.
• Account Fee – $20/month.
• Fee for Discharge – For the discharge the loan, it will cost $295.
• Loan Settlement Fee – $275

Flexibility and Choice

You can opt for the “Value Advantage Packet” and you will be able to save loads of cash each year. There is also “Deposit Bond” which makes it possible for you to arrange for a deposit without the need of dipping into your savings.

Read the official terms and conditions

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