Rams 1% below standard variable for 2 years
- Thread starter sparky23
- Start date
RBA rate is currently 4.25% , so to get to 3 % we would get RAMS standard Variable (if the full drop passed on) of 5.24 %, so 1% under standard variable would be 4.24 %.
Considering banks are currently offering 4.99% for 3 years the deal doesn't seem that great as is comparable to current 2 year rates at Bank West, NAb and Westpac
Considering banks are currently offering 4.99% for 3 years the deal doesn't seem that great as is comparable to current 2 year rates at Bank West, NAb and Westpac
Yes but most people believe there are more falls to come otherwise everyone would be grabbing the 4,99% rate now whereas most people including myself are waiting for a 5 year or more fixed at a better rate than the 4.99%.
Generally variables are below fixed so if variable drops just below to say 4.5% this would mean the Rams variable would be discounted to 3.5%. Not for me as I have too much risk so I will need to grab a good fixed rate across all of the loans but for someone with less to worry about it may suit their purpose.
Generally variables are below fixed so if variable drops just below to say 4.5% this would mean the Rams variable would be discounted to 3.5%. Not for me as I have too much risk so I will need to grab a good fixed rate across all of the loans but for someone with less to worry about it may suit their purpose.
Lowest Rams variable is the Rate Relief, currently 5.69%. Max LVR 100% (or 97% plus LMI). Rams will continue to pass on rate cuts being owned by Westpac, so anyone with them should see their rates drop when/if the RBA cuts again...
Belu, you could have gone I/O on that product if you had wanted to...
Belu, you could have gone I/O on that product if you had wanted to...
I am looking at this and wondering what the catch is.
Raymond, who is the mortgage insurer for the Rams product?
No real catch.
Just need to be aware that -
*RAMS isn't a transactional bank they don't offer an offset facility of any kind.
* Minimum redraw of $1k
*The rate currently reverts to 6.29% after the 2 year period
* you must stay on the reverting rate for 2 years or face a DEF of 1% of original loan amount.
* the reverting rate is above that of most lenders pro pack. This being the case there will be additional costs to refinance elsewhere shoould you wish to do so.
Regards
Steve
It's the same insurer as Westpac & STG. Westpac insurance or whatever they call themselves
Buzz
Insurer is called WLMI, pretty much if it meets Rams policy it will get insured.
I have been told that after the 2 years "honeymoon" that the break costs would not be 1%, it will be the usual admin fee.
I'm just thinking $0 application and $0 ongoing account keeping fees is looking pretty good.
I'm just thinking $0 application and $0 ongoing account keeping fees is looking pretty good.
I was only speaking to my BDM just yesterday and he confirmed the 1% penalty. The 1% is based on the original loan amount so there goes the idea of paying it down to a minimal amount before refinacing elsewhere.
Regards
Steve
Yeap i know about the 1%, but this condition stays even after the 'honeymoon' period?
1% of the initial loan amount is payable if the loan is paid out within 4 years of settlement. After 4 years you can either switch to one of RAMS other products (such as the basic or Smartway pro pack) just for a switch fee. Alternatively you can refinance to another lender after 4 years without incurring the penalty.
Although the rate is higher in years 3 & 4 if you look at the total cost over the first 4 years this loan and compare it with other variable rate products out there this is a very competitive product.
Although the rate is higher in years 3 & 4 if you look at the total cost over the first 4 years this loan and compare it with other variable rate products out there this is a very competitive product.
