RAMS Lifestyle Option
RAMS Lifestyle Option
During challenging financial times, customers may find they start to struggle keeping up with repayments and bills. Rather than risk losing the family home, RAMS Home Loans offer customers a helpful solution.
The ability to defer home loan repayments for up to six months is RAMS’ way of helping borrowers facing financial hardship, or going through life changes that require time away from work, such as maternity leave. This actively reduces the amount you need to pay on your home loan repayments, making it easier for you to get back in control of your financial situation.
It also means you won’t risk losing your home while you’re temporarily having financial difficulty.
Once your financial situation improves again, you can continue making your regular payments as normal.
How the RAMS Lifestyle Option Works
If you know you’re having difficulty keeping up with your home loan repayments, or your financial situation has changed, you should contact RAMS Home Loans immediately. You will have to let the RAMS representative know what’s changed in your life that has made it so hard for you to afford your repayments.
This could be an illness, injury, unexpected job loss, redundancy, maternity leave, paternity leave, or other issue that has temporarily reduced your income.
During the Lifestyle Option, your payments will be reduced to make your payments easier to afford. Reduced repayments can extend for up to six months. In some cases, a second period of up to another 6 months may be approved.
The amount owing will not be added to your loan amount. Instead, the loan term will increase by an extra 3 or 4 months. This means your debt won’t be increased by the extra interest charged, or the smaller payments being made.
How Much Will the Payments Drop?
RAMS will allow you to reduce your normal monthly repayments by up to 50% of the usual amount you pay. This reduced payment agreement will extend for a period of up to six months, and should make it much easier for you to make a smaller payment on your mortgage.
You may have paid some extra amounts off your mortgage already. If you do have funds available in your redraw facility, these amounts will be used up first before the Lifestyle Option will begin.
If you find that your financial situation isn’t any better at the end of the initial six months, RAMS may extend this for up to another 6 months, to a total allowed period of 12 months. They really do want to help customers keep the family home, so this offers an opportunity to get back on track.
Of course, if your financial situation does improve throughout this time, it’s to your own advantage to begin making normal repayments again as soon as possible.
Making a Formal Request to RAMS
RAMS will ask you to complete a formal request to have your mortgage payments reduced. The formal request should include an updated list of assets and liabilities. If should also be signed by all the borrowers named on the original mortgage.
Your formal request will need to include verification of your reason for wanting to use the RAMS Lifestyle Option. This could be providing medical documentation, or redundancy documents, or maternity leave approval from your employer.
Who Will Not Qualify for the Lifestyle Option?
RAMS Home Loans may request to re-value the security property. In order to qualify for the Lifestyle Option, the mortgage balance must be less than 90% of the property value.
If you are a Low Doc client, this loan-to-value ratio must be less than 80% in order to qualify.
Waiting Period
Customers with a new RAMS Home Loan that is only a few months old will have to wait out the waiting period.
For borrowers who have been retrenched, or are unable to work due to illness or injury, their RAMS Home Loan needs to be at least 6 months old.
Borrowers on Maternity or Paternity leave will need to ensure their RAMS Home Loan is at least 12 months old before applying.
Related posts:
- Rams Rate Shearer Home Loan
- RAMS Construction Option
- RAMS Fixed Rate Home Loan
- RAMS Fixed Rate Pro Pack
- RAMS SmartWay Home Loan
- RAMS Full Feature Home Loan
- RAMS Low Rate Home Loan
- RAMS standard variable home loan
- RAMS SmartWay Pro Pack 2
- Westpac Premium Option Home Loan
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