Rams Rate Shearer Home Loan

A three year honeymoon does sound decadent, and not just when it comes to the holiday you take after your wedding because a three year honeymoon period on a home loan is much more indulgent that the 12 months many loans offer. However, that is exactly what is offered by Rams Home Loans with their Rate Shearer Home Loan, which offers a discounted variable rate for the first three years of your loan, and a low revert rate at the end of your honeymoon period too.

Features of a Rams Rate Shearer Home Loan

A new home loan, whether for your first home or your next home is a big commitment both financially and emotionally and any tools which can make the transition easier will help set you up for a financially responsible future, where you are in control of your mortgage – not the other way around.

Features of the Rams Rate Shearer Home Loan include:

• A discounted variable rate for the first three years. You will be charged an ongoing low interest rate for the first three years of your home loan, which is discounted from the already low basic home loan interest rate. This means that as you cover moving costs, house warming parties and new furniture, you can have greater cash flow thanks to a lower monthly repayment.
• Competitive ongoing interest rate. Many home loans with honeymoon rates will revert to a high interest rate at the end of the introductory period, which can eat away at all of the savings you made with a lower honeymoon rate. However, the Rams Rate Shearer Home Loan maintains a great ongoing rate too, so there are no nasty surprises.
• Borrow up to 95%. This means you can borrow up to 95% of the purchase price or the valuation – whichever is lower. Therefore, you only need to find a 5% deposit for your home loan which is another great way to keep the costs down at the beginning of your home loan.
• Up to 10 years interest only repayments. If you use the Rate Shearer Home Loan as an investment loan you can make interest only repayments for 10 years to help maintain cash flow, and easily manage your tax reporting. If you’re using the Rate Shearer Home Loan as an owner occupier, you can still reduce your repayments by paying interest only for up to five years.
• Access additional repayments with redraw. If you want to get ahead on your home loan, you can make additional repayments, as this directly reduces the principle loan amount, and in turn reduces the interest charged on your loan. This can also reduce the loan term because you have boosted your repayments outside of the original amortised amounts. At the same time if there is an unexpected expense in your life and you need access to extra funds, you can redraw up to the amount of your additional repayments.

Add Rams Fast Track to Your Rate Shearer Home Loan

The Rate Shearer Home Loan has the option to use the Rams Fast Track feature where a guarantor can provide security and in turn reduce the deposit and the amount of Lender’s Mortgage Insurance you need to pay. A guarantor is usually your parents or another family member who offers a limited guarantee supported by a first registered mortgage or a second mortgage on their property.

The guarantee is for the amount you are borrowing which is over 95% of the property value. This allows you to borrow the full purchase price without paying any mortgage insurance. You can also borrow up to 120% of the purchase price of you are using the funds for debt consolidation or home improvements, without having to provide any cash deposit.

Your guarantor is only liable for the guaranteed amount, not the full loan amount or for your monthly repayments. The guarantor can also have the guarantee released at any time.

Add the Lifestyle Option to Your Rate Shearer Home Loan

There are always times in your life when money is tighter than others, and the Lifestyle Option allows you to defer the repayments on your loan for up to six months, twice during the life of your loan. This means that if your income is affected by temporary circumstances such as parental leave, an accident or retrenchment, you don’t have to worry about defaulting on your loan or losing your home.

• Available on owner occupier loans and investment loans.
• You must maintain a minimum of 50% of normal monthly interest only repayments.
• The maximum period for reduced repayments is six months.
• At the end of your six month period your situation can be assessed to allow another six months.
• Shorter time frames can be applied as long as the total duration is not more than 12 months.

How to apply for a Lifestyle Option:

• The application must be made by formal request. All borrowers listed on the loan must sign the request for a repayment deferment. You will also have to complete an updated assets and liabilities statement.
• Confirm your reason. You must be able to provide evidence of the reason for your request in the form of a redundancy notice, a maternity leave approval or medical documentation.
• When deferring for maternity leave the loan must have been drawn down at least 12 months before applying for the Lifestyle option.
• When deferring because of retrenchment, an accident or sickness the loan must have been drawn down at least six months before applying for the Lifestyle Option. Your application must also be approved by the mortgage insurer.
• The LVR must be less than 95%. At the time of deferment your loan to value ratio must be less than 95% for standard loans and less than 80% for low doc loans.
• You must use up your redraw. If you have been making additional repayments, you must use up the available redraw amounts before the Lifestyle Option can begin.
• Your repayments are halved now. The remainder of your repayment amount during the Lifestyle Option period is added to your loan, and repaid over the life of the loan.

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