RAMS Line of Credit
Posted August 3rd, 2010
and last modified January 31st, 2012
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- 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
If you have owned your home or an investment property for long enough to build up some equity, a line of credit home loan allows you to get access to that equity and use the funds for other projects. Currently RAMS Line of Credit home loan is offered at a competitive variable interest rate of 7.06%
The features and benefits of RAMS Line of Credit loan
Renovating the home, paying off the balance of the credit cards, investing in shares – they’re all dreams that cost money to fulfil. Even if you don’t have any spare cash, these dreams might still come true if you could tap into the equity you have in your property with a line of credit loan.
When a line of credit loan is approved an ongoing credit limit is set and you have access to the loan funds with a transaction account using a cash card and cheque book. It’s like having a credit card, but because a line of credit loan is secured by your property the interest rates are much lower than on credit cards which are unsecured. A line of credit loan can therefore be a cost effective way of paying for major purchases that might otherwise have been paid for with high interest rate personal loans or credit cards.
Some of the main features of a RAMS Line of Credit loan are:
- Variable interest rate, currently 7.06%
- Split loans are permitted, so the loan can be split into variable interest rate and fixed interest rate portions depending on your requirements. If you would prefer to know in advance what your monthly repayments will be, to avoid high repayment amounts and help you to budget accurately, you may choose to fix a portion of the loan.
- Funds can be used for any purpose. Line of credit loans are often used for stock market or property investment, or as a way to consolidate debts into a lower interest credit facility. Because you only pay interest on funds you’ve drawn down, a line of credit loan can be a cost effective way to pay for home renovations where costs are spread out over an extended period. The line of credit offers a great degree of flexibility and can be a valuable source of funds for people who have disciplined money management habits.
- Repayment periods may be weekly, fortnightly or monthly, whichever suits you best.
- Extra repayments may be made. You can deposit spare funds into the loan account at any time to reduce the account balance and repay the loan sooner with savings in interest.
- Extra repayments can be redrawn. If you have made extra payments into your loan account you can access them if you need to.
- Interest capitalisation is allowed, so if you’re below your credit limit you don’t have to make regular repayments.
- Interest only repayment terms are permitted so that your repayments are limited to the interest component. This allows you to keep outgoings to a minimum and frees up funds to use for other purposes, a useful feature for investors who wish to gain maximum return on their investments and keep funds available for further investment opportunities.
- Who can apply for the loan? Owner occupiers or property investors wishing to borrow from $15,000 for up to 30 years are eligible to apply for the loan.
- How much can I borrow? Up to 90% of the property valuation may be borrowed without mortgage insurance, or up to 90% of the property valuation with mortgage insurance.
- What are the fees and charges? There are upfront application fees of $595, a valuation fee of and a settlement fee of , and monthly account keeping fee of $20.
If you would like to use the equity that has built up in your property for further investment, to pay for major purchases or to consolidate debts, consider a RAMS Line of Credit home loan.
Read the Rams Line of Credit terms and conditions.
| Minimum Loan Amount | $15,000 | |
|---|---|---|
| Maximum LVR | 90% | |
| Maximum Insured LVR | 90% | |
| Mortgage Offset Account | No | |
| Loan Redraw Facility | Yes | |
| Split Loan Facility | Yes | |
| Fixed Interest Option | No |
| Interest Rate Type | Fixed | |
|---|---|---|
| Interest Rate | 7.06% | |
| Repayment Type | Interest Only | |
| Repayment Frequency | Weekly | |
| Extra Repayments | No |
| Application Fee | $595 | |
|---|---|---|
| Valuation Fee | $200 | |
| Service Fee | $20.00 | |
| Settlement Fee | $295 |
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