flagFounded: 1991, taken over by Westpac in 2008

businessOwned by: Westpac

monetization_onFunded by: Retail deposits and wholesale capital markets

securityLMI Provider: WLMI

account_balanceLender type: Non-Bank that’s owned by a Major Bank

Rams was originally a non-bank lender that ran into trouble during the GFC and was eventually purchased by Westpac.

They’ve continued to offer home loans catering to first home buyers while Westpac focuses on high net worth clients.

They have some unique home loans and credit policies combined with some good interest rates and great customer service thanks to their franchisee model, which means they are a viable option to the other banks.

They were once the best lender for self employed borrowers seeking a low doc loan however they have stopped offering low doc loans as of April 2019.

How do Rams’ home loans compare?

They’re great at

But they’ve got some drawbacks…

  • Their low doc loans are no longer offered
  • Self employed borrowers must prove their income
  • Franchisees are mortgage brokers but they tend to recommend Rams over other lenders
  • Unlikely to negotiate their interest rates
  • Rarely competitive for loans over $1 million
  • They don’t deal directly with mortgage brokers so most brokers work with a franchisee
  • Their fixed rates are rarely market-leading
  • LMI can be expensive
  • It’s hard to say what Westpac’s plans are for Rams

What home loans types do they have?

Rams’ Low Rate Home Loan is a basic loan with no monthly fees and few features. It’s best for small loans or investors.

Ram’s Value Advantage Package is similar to a professional package offered by the major banks. You’ll get a tiered interest rate discount depending on the size of your loan and if you’re borrowing over 80% of the property value or not. It’s not bad for loans under $1 million, however other lenders tend to be cheaper for bigger loans.

Rams’ Fixed Rate Home Loan allows you to fix for up to 10 years, which is longer than other lenders but there tends to be a better offer out there.

Why happened to Rams’ Low Doc Loans?

Rams had a home loan known as the Rams self employed ‘lo doc’ home loan which was very popular with business owners.

It had a low rate and easy approval criteria, often only requiring an accountant’s declaration of your income.

However, this was withdrawn in April 2019 as Westpac, the owner of Rams, decided to no longer fund this product.

While there has not been a clear indication from Westpac as to why this decision was made, we believe it may have been the fallout from the Royal Commission.

Low doc loans have long been perceived by the public, government or media to be ‘liar loans’ that allow people who are not paying tax to get approved.

The reality is that self-employed borrowers often lodge their tax returns late, have complex financial situations or their historical tax returns do not reflect their current income.

Luckily, there are low doc solutions available with other lenders, where this suits your needs and so you can afford the repayments.

A franchisee vs a mortgage broker

Rams home loan centres are franchisees which can cause a conflict of interest.

After 2–3 years, you’ll often find that your lender has you on a higher interest rate than those that they’re offering to their new customers.

As mortgage brokers this is easy to handle, we can negotiate with the lender. If they won’t offer you a better deal, then we can assist you to refinance.

However, the franchisees are tied to Rams and it’s a conflict for them to refinance a customer away from Rams to another lender.

So, if you choose to go with Rams you need to monitor your home loan rate every year and make sure that you’re getting the best possible deal.

Tip for applying with RAMS

Use RAMS’ Home Loan Application Form to prepare for your home loan application.

Note: This is the latest home loan checklist as of April 2019. Please refer to RAMS for their most up-to-date document requirements.


Compare Rams to other lenders

Not sure which lender is right for you? Our Home Loan Experts can help!

Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.

  • FT

    I’m also self-employed and would like to know what expenses I can add back to my income other than depreciation. Can you please tell me?

  • Along with depreciation, you can add back additional super contributions, net profit before tax, one off expenses, interest expenses, company car expenses, and more. Please check out the self employed home loan page for details on all of this:
    https://www.homeloanexperts.com.au/unusual-employment-loans/self-employed-home-loan/

  • kenny

    Hi, do you have any info on WLMI that I can go through to help me plan my mortgage?

  • Yes we do, Kenny. You can check out the compare Westpac LMI page to find all the info you may need and more. Here’s the link to the page:
    https://www.homeloanexperts.com.au/lenders-mortgage-insurance/compare-westpac-lmi/

  • Lit

    I don’t own any property and this will be the first time I buy one so I would like to know how much first home owners grant I am eligible to receive.

  • Hey Lit,
    Under the first home owners grant (FHOG) scheme, a one-off grant of normally $7,000 is payable to first home buyers. Note that some states have additional or separate grants, so we’ve created a First Home Owners Grant Calculator to let you know what’s available in your state. Please try it out here:
    https://www.homeloanexperts.com.au/mortgage-calculators/first-home-owners-grant-calculator/

  • Henry Smythe

    Rams Home Loans are a good lending institution, however be selective in the Rams Home Loans Broker you get to lodge/set up your Loan Application, as I have heard far too many unhappy Rams clients that have used the services of a certain Rams Home Loans Broker … Andrew Robinson trading from Adelaide,SA.
    Andrew has made so many errors with the loan structure, given inaccurate loan repayment calculation’s and surprises you with a unexpected shortfall of deposit before settlement..so do your homework..
    It really comes down to the Mortgage Broker that you use to set up the ideal loan structure (70% importance) and the Bank lending you the money of course and there are plenty of Banks offering you the money (30% Importance)
    Last thought for you all. … When the Bank won’t lend you any more money, remember the Mortgage Broker is the one that will continue to help you to get more Finance to buy that 2nd, 3rd or 10th Investment Property.
    So it pays BIG $$$ to only speak and do business with a Positive, Property Investing Mortgage Broker..