RAMS Home Loans today announced it will reduce its already low Standard Variable Rate (SVR) by 0.25% p.a to 9.29% p.a.

On top of the rate cut, RAMS is taking the pressure off with the recent launch of a new home loan, RAMS Rate Relief which offers new borrowers a low variable rate of only 8.29% p.a.

The rate reduction directly follows the Reserve Bank of Australia’s move today, making RAMS prices some of the most competitive in the national lending market. This move combined with the new Rate Relief home loan, local service and flexible approach will place RAMS at the top of shopping lists this Spring.

RAMS General Manager, Melos Sulicich said while the short-term funding costs remain volatile, RAMS wanted to pass the full rate cut to customers to help ease the financial burden.

“We are simply listening to the needs of borrowers who have told us they are finding it increasingly difficult to cover the high cost of bills, repayments, petrol prices and groceries,” Mr Sulicich said.

“Therefore, we are moving quickly to make the new rates available to our customers from this Thursday 4 September.”

RAMS market research shows interest rates and home loan fees remain the key factors when customers are shopping around for a home loan so RAMS decided to reduce both.

Key features of RAMS Rate Relief home loan includes:

• 1.0% p.a. discount off the already low RAMS SVR for the first two years;
• a discount of 0.4% p.a. off the SVR for the remaining loan term;
• no on-going account keeping fees;
• Available for all new loans over $100,000.

On an average loan of $300 000, this represents a saving in repayments of more than $200 a month over the first two years alone when compared to the current SVR loans on offer by the major banks.

Mr Sulicich said, “We felt it was very important for Australians to be able to access a more affordable alternative, especially with the challenges of the current financial market.

“Whether refinancing or seeking a new property, we believe RAMS Rate Relief will place RAMS at the top of home loan shopping lists this Spring - traditionally a popular time of the year for new beginnings and new properties.

“RAMS continues to be known for delivering flexible and innovative home loan solutions to assist Australians to get into the home of their dreams. Now that RAMS is financially backed by one of Australia’s leading banks, Westpac, we are able to try new things to offer even better deals to those seeking to refinance, invest or buy their first home,” he said.

Customers can take advantage of the new RAMS Rate Relief home loan by visiting a RAMS Home Loan Centre or from the RAMS broker network. Customers seeking further details can call 13 RAMS (13 7267) or go to www.rams.com.au