Fixed Rate Expiry - Things you should know

Things you should know

The information provided does not take into account your financial circumstances. Before you make a decision about re-fixing this loan, you should review the information below.

Original Loan Agreement

The terms and conditions that apply to fixing the interest rate on your loan are contained in your original loan agreement. You should read (or have it read out or translated) carefully.

Fixed Interest Rate

Once the interest rate is fixed at the start of a new fixed rate period, the fixed interest rate will not change even if variable rates move either up or down during the fixed rate period. This will give you certainty of repayments during the fixed rate period but does impose some limitations on your account. Please refer to your loan agreement for more information.

At the end of the fixed rate period, your repayments will depend on the interest rate at that time. Your new repayments may be higher or lower than the repayments during the fixed rate period. 

Indicative Rates and Repayment Amounts

These amounts are only estimates. They are based on assumptions that repayments will be made on time and that the interest rate and fees and charges will not change after this re-fix request has been successfully submitted online. Calculated repayment is based on your credit limit. If you are currently paying an amount that is higher than the indicative repayment amount, that is you have nominated an amount to be collected, are making salary or direct credit payments or are paying the minimum repayment based on your balance, you may continue to do so. If you have previously chosen to pay more than the minimum repayment amount, this extra amount will continue to be applied to your principal balance . Refer to the below “Additional Repayments ” section relating to potential implications of paying more than the minimum repayment amount. 

Additional Repayments

You can make additional payments or increase your loan repayments during the fixed rate period.  You are responsible for ensuring that the total of additional payments does not exceed $30,000 per fixed split during the fixed rate period. Should you exceed this amount during the fixed rate period, a break cost may apply. Break costs can be considerable – sometimes tens of thousands of dollars, refer to the “Additional Costs, incl. Break Costs” section below.

RAMS Home Loans - Interest Rates and Fees and Charges 

RAMS Home Loan interest rates and comparison rates are located in the Owner Occupier Rates at a Glance or Investor Rates at a Glance. 
   
Fees and Charges applicable to your RAMS Loan can change over time. RAMS Home Loan Fees and Charges can be found in your original loan agreement, in notices sent to you about changes, and in RAMS Home Loan Fees and Charges.

Additional Costs, incl. Break Costs

Once the interest rate is fixed at the start of a new fixed rate period, any changes made to the loan may incur additional costs including break costs, which could be considerable – sometimes tens of thousands of dollars. These changes include changing the interest rate back to a variable rate; selling your existing security property and buying a new security property; varying your loan - including limit increases and decreases; making payments above your regular repayments; switching between Principal and Interest and Interest Only repayment types; and paying off your loan.

We cannot advise you of this break cost as it is based on the difference between wholesale interest rates that applied when you first began your fixed rate period and wholesale interest rates applicable on the day a prepayment is made.

When break costs are charged a $150 administration fee will also apply.

Loan Classification

You are unable to change your loan purpose from Investment to Owner Occupied or Owner Occupied to Investment during the Fixed Rate Period.

Split Loans

You can have multiple splits in one loan facility with a mixture of up to 3 fixed and 1 variable portion. If you’re looking to apply for an increase during the fixed rate period, we recommend that you leave an amount owing on a variable interest rate.  

Splitting a loan after it has been re-fixed may result in fixed rate break costs and associated fees – refer to the Additional Costs, incl. Break Costs section above. 

If you want to split your loan rather than re-fix it or discuss any other options, please call us on 13 RAMS, that’s 13 7267.

Offset Accounts

An offset facility is not available during a fixed rate period. If you choose to switch to a variable rate loan that is eligible for an offset account, and would like an offset account, please call us on 13 RAMS, that’s 13 7267. 

Redraw Facilities

Any available redraw on your home loan prior to fixing will be considered towards the additional repayments of up to $30,000.00. Break costs may apply if the available redraw exceeds $30,000 during the fixed rate period – refer to the “Additional Costs, incl. Break Costs” section above. 

Amending or Cancelling a Request to Re-Fix

You are able to amend or cancel a request to re-fix your home loan, without penalty, up to and including the last business day before your current fixed rate period is due to end by calling 13 RAMS, that’s 13 7267 (option 1), between 8:30am – 5:30pm (AEST), Monday-Friday (excluding national and NSW public holidays).

Changes to your home loan after the new fixed rate period begins may result in fixed rate break costs and associated fees – refer to the “Additional Costs, incl. Break Costs” section above.

Revoking or Rejecting a Request to Re-Fix

If your financial circumstances change before the start of the new fixed rate period, we reserve the right to revoke the ability to request a re-fix or, if you have already submitted a request to re-fix your home loan, reject the re-fix request. If this scenario occurs, we remain committed to helping you work through your home loan options.

Switching to a Variable Rate

If you choose not to re-fix this home loan before your fixed rate period ends, this loan will automatically switch to a variable rate once your current fixed rate period ends. No action is required on your part to make this happen.

The variable rate quoted as part of your online re-fix options is subject to change between now and the end of your current fixed rate period, and the actual variable rate at that time will apply.

If you want to discuss all available options, please contact 13 RAMS, that’s 13 7267 (option 1) between 8.30 am - 5.30 pm (AEST), Monday - Friday (excluding national and NSW state public holidays).

Responsible Lending

Our Lending guidelines are designed to ensure that we lend responsibly. Please make sure, before you proceed, that the change to your product meets your requirements based on the limitations explained in this section, and that you are able to afford your agreed repayments.

If there is anything you do not understand, we recommend you seek financial advice before fixing. If your circumstances change or you think you may not be able to afford the payments, please call us on 13 RAMS, that’s 13 7267.