RAMS Home Finance: A Look at Their Offerings

RAMS Home Finance, a brand of Westpac Banking Corporation, has been a presence in the Australian home loan market for over two decades. Primarily known for their extensive network of franchise branches, RAMS focuses on providing home loan solutions to a wide range of borrowers, from first-time buyers to seasoned property investors.

Loan Products and Features

RAMS offers a variety of home loan products designed to meet diverse financial needs. These typically include:

• Fixed Rate Loans: Provide interest rate certainty for a set period, offering protection against potential rate increases.
• Variable Rate Loans: Interest rates fluctuate with market changes, potentially leading to savings when rates fall but exposing borrowers to rate hikes.
• Split Loans: Combine fixed and variable interest rate portions, balancing rate security with potential savings.
• Introductory Rate Loans: Offer a lower initial interest rate for a limited time, followed by a standard variable rate. These can be attractive initially but require careful consideration of the rate after the introductory period.
• Investment Loans: Specifically designed for those purchasing property for investment purposes, often with features tailored to investors’ needs.

In addition to loan types, RAMS home loans often come with various features, such as:

• Redraw Facility: Allows borrowers to access extra repayments they’ve made on their loan.
• Offset Account: A transaction account linked to the home loan, where the balance effectively reduces the loan principal, saving on interest payments.
• Flexible Repayment Options: Including weekly, fortnightly, or monthly repayments to suit individual budgeting preferences.

The RAMS Franchise Model

A key differentiator for RAMS is its franchise network. Customers typically interact with local RAMS franchisees, offering personalized service and local market knowledge. This model can provide a more face-to-face and relationship-driven experience compared to purely online lenders. Franchisees can assist with the application process, answer questions, and guide borrowers through the complexities of securing a home loan.

Considerations When Choosing RAMS

While RAMS offers a variety of home loan products and a personalized service model, it’s essential for potential borrowers to carefully consider several factors:

• Interest Rates and Fees: Compare RAMS’ rates and fees with those of other lenders to ensure competitiveness. Pay attention to both advertised rates and comparison rates, which include fees.
• Loan Features: Assess whether the features offered align with your individual needs and financial goals. For example, an offset account might be valuable if you have significant savings.
• Franchisee Expertise: Research the experience and knowledge of the local RAMS franchisee you’ll be working with.
• Westpac Ownership: Be aware that RAMS is a brand of Westpac, so their loan products and policies are ultimately influenced by the parent company.

Ultimately, choosing the right home loan requires careful research and comparison. While RAMS offers a well-established brand and a franchise-based approach, borrowers should thoroughly evaluate their products and services against other options in the market to make an informed decision.