RAMS Investor Home Loan
What happens when I click Enquire Now?
- Clicking Enquire Now will take you to the lender's website
- After completing the contact form, a mortgage expert will contact you
- The mortgage expert will ensure you find the right loan, calculate your repayments, and explains all the associated fees
- After going through the enquiry process you will be able to know how much you can borrow, begin your application when you are ready to apply and be approved for a home loan
RAMS Investor Home Loan Overview
The RAMS Investor Home Loan offers customers a genuine way to enter the investment property market with very little deposit required, but also allows investors to benefit from a very low variable interest rate.
With a maximum possible loan-to-value ratio (LVR) of up to 95%, this can allow customers to purchase an investment property and enter the real estate market with less money than they might believe is required.
One of the biggest reasons people put off purchasing an investment property is the belief that they may not have sufficient funds in savings to place a deposit on a property that will be rented out.
Yet, with just 5% of the purchase price required in genuine savings, or in available equity in an existing home, it could be very possible to buy a rental property now. This could be an excellent opportunity to take advantage of the market while house prices are lower than usual.
Features and Inclusions
The RAMS Investor Home Loan is able to be set to “Interest Only” repayments for up to 10 years. As long as the Interest Only option is set initially for the first five years, customers are able to extend the term for Interest Only payments for a further five years after this point.
This allows customers to cover only the interest portion charged to the loan, without needing the extra cash to cover the principal portion of a normal mortgage payment. For investors, this can also be advantageous for tax purposes, as it allows them to put any excess cash flow into their own non-deductible mortgage on the family home first.
Always discuss investing options with your accountant to ensure you’re setting up your finances in a way that is suitable for your own financial goals and personal situation.
Acceptable Loan Purposes
Customers are able to use this particular home loan to purchase an existing property for investment purposes. Investors may also use this home loan for refinance purposes to help reduce the amount of interest paid on outstanding mortgages held with other banks. It’s also acceptable to use this loan to construct a new property on vacant land.
Interest Rates
The standard variable interest rate on the RAMS Investor Home Loan is currently 6.21% This is an extremely competitive rate, and is actually lower than many of the Big Banks offer.
RAMS Home Loans also offer the ability to switch over to a fixed interest rate at any time during the home loan term. A switching fee of $295 will apply.
Fees and Charges
| Fee Type | Fee Amount |
| Application Fee | $595 |
| Monthly Account Keeping Fee | $20 per month |
| Loan Settlement Fee | $275 |
| Valuation Fee | $150 per property (1st valuation is free) |
Lender’s Mortgage Insurance
RAMS Home Loans don’t call their LMI premiums “Lender’s Mortgage Insurance”. Instead, they will charge a “RAMS Risk Fee” for any loan exceeding 95% LVR.
However, it’s worth noting that the RAMS Risk Fee charged can be capitalised on to the loan up to a total LVR of 95%.
Repayments
Repayments on an Interest Only home loan are calculated daily and shown as a total figure at the end of the month. This means the minimum payment due each month is the accumulated interest figure.
RAMS Home Loans are able to directly debit the amount due for the interest payment from a regular transaction account once every month, usually on the monthly anniversary of the original settlement date.
It’s also possible for customers to arrange payment to be made by salary credit, where the payroll person for an employer can directly credit a payment from a regular salary. Payments may also be made by BPAY.
Customers are encouraged to make extra repayments voluntarily whenever they desire. This can be done electronically by transferring funds into the loan account via Internet Banking, or by Phone Banking.
Any extra payments paid into the mortgage account over and above the minimum Interest Only payment required may be redrawn at any time.
Read the official terms and conditions
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 |
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