Suitable for investors, owner-occupiers and refinancers, the Rams Low Rate Home Loan could be especially appealing for borrowers who want to secure their first home and keep interest to a minimum. For borrowers in that category, it is worth going over the fine print to make sure any potential loan is fit for purpose and aligns with the household budget.
There is no maximum borrowing amount with the Rams Low Rate Home Loan, but the minimum loan size is $15,000, which may appeal to refinancers.
The Rams Low Rate Home Loan has a maximum Loan to Value Ratio (LVR) of 95 per cent for both owner-occupiers and investors, which means small deposits are accepted.
There is also a ‘lifestyle option’ available that enables borrowers to apply to defer repayments for up to 12 months, although certain conditions and fees apply.
The Rams Low Rate Home Loan offers a number of features, among them a 100 per cent offset account and a redraw facility. The redraw facility lets borrowers redraw some of their earlier repayments if they need them for another purpose.
The 100 per cent offset account, meanwhile, acts as a transaction account linked to your home loan which offsets interest.
Flexible repayment options are another highlight of the Rams Low Rate Home Loan. The loan enables you to suit your own payment plan by making weekly, fortnightly or monthly repayments that are debited from a transaction account.
In addition, The Rams Low Rate Home Loan allows you to choose between making principal and interest repayments, or choosing to make interest-only repayments for up to 10 years, which could particularly appeal to investors.
Owner-occupiers and investors do not attract any ongoing fees with the Rams Low Rate Home Loan, which lets borrowers focus on paying off their loan.
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As with any loan there are also downsides to the Rams Low Rate Home Loan. The standout is the number of fee categories, which include a discharge fee, an application fee and a loan settlement fee.It may be a good idea when comparing different loans to check the fees and see how they compare.
One important factor to remember when looking at fees is that there is a legal obligation for lenders to tell you about any fees or charges before borrowers sign up for a loan, however the name of the fee may vary.
Note: This review provides general information about the above home loan. Any views expressed are the author’s own. It is not intended to be a recommendation of a particular product. To the extent that this commentary may constitute general advice, this advice is of a general nature and does not take into account your individual objectives, financial circumstances or needs. We recommend that before you make any financial decision you seek professional advice from a suitably qualified adviser and read the PDS. Read more about our important disclosures here.