Fast Track
Did you know you can buy your first home with no deposit and pay no mortgage insurance? All you need is the help of a guarantor!
With the help of the Rams Fast Track Home Loan, you may be able to borrow up to 110% of the purchase price.
Rams makes this possible by using a friend or family member’s property as additional security for your home loan.
So how does the Rams loan compare to the guarantor loans offered by other lenders? Read on to find out.
Pricing / Discounts
Rams has their Smartway Professional Package and their Basic Home Loan available for use as a Fast Track loan.
The following packages all have distinct features so we recommend that you enquire online or call us on 1300 399 056 to speak to one of our brokers who can compare them in detail for you:
- Smartway Professional Package: The Rams Smartway package is an all in one loan that has one of the lowest interest rates available for loans over $500,000. This loan is ideal for anyone looking for ATM or cheque access to their loan account as well as a low variable interest rate.
- Basic Home Loan: The Rams basic home loan is a no frills loan product with a low ongoing rate and no ongoing fees. With this loan, you can avoid paying for features that you don’t need.
- Rams Fixed Rate Home Loan: Fixed rate loans are often used in conjunction with the Fast Track guarantor loan option. This allows you to have the security of a fixed rate whilst being able to make additional repayments to the variable portion, so that the guarantee can be removed as soon as possible.
Lending Policy
Depending on your situation you may be eligible to borrow up to 110% of the purchase price (120% in some rare cases).
This will help fund the costs associated with buying a property, improvements and renovations on the home, as well as help you to consolidate some of your minor debts.
However, the loan must be used as a first registered mortgage on the guarantors security property. This means that your guarantor must have no other debts attached to the property that is subject to the guarantee.
The guarantor also has the option of limiting the guarantee amount to a specified sum, which may help to reduce their risk.
Home Loan Features
- Redraw (fees apply).
- No ongoing fees.
- Low variable rate.
- Internet banking (view only access).
- Interest only is available.
- Redraw.
- Annual fee is payable.
- ATM, eftpos & cheque book access.
- All in one account facility.
- Low variable rate.
- Internet banking.
- Interest only is available.
- Competitive fixed rates.
- Redraw is available (restrictions apply).
- Additional repayments of up to $25,000 in total are allowed without break fees during the fixed rate term.
- Can be packaged with a Smartway or Basic home loan.
- Internet banking.
- Interest only or principal and interest repayments.
Rams also allows you to limit the guarantee to approximately 25% of the loan amount, depending on the percentage of the purchase price that you are borrowing.
This is known as a limited Fast Track guarantee. For more information on this loan product, please speak to us on 1300 399 056 or enquire online.
Disadvantages
Whilst the Fast Track loan product is quite competitive, it has some disadvantages. The main disadvantage is that second mortgages are not accepted. Therefore, if your guarantor already has an existing loan on their property, Rams will not accept their guarantee.
A further disadvantage is that the guarantors income cannot be included in a Rams serviceability assessment. As such, your borrowing capacity may be reduced.
If these circumstances apply to you, there are other lenders that may be able to approve your loan, depending on the strength of your application.
Apply for a Fast Track loan today!
Want to find out if this is the right loan product for you? Please enquire online or call us on 1300 399 056 to talk to one of our mortgage brokers.
We can work out which banks will accept your situation and offer you the most competitive guarantor loan. Call today!
