RAMS joins Westpac by cutting fixed rates below 5%

Mortgage lender RAMS has cut its one year-fixed rate home loan by 40 basis points to 4.99% per annum.

The loan has a relatively high comparison rate of 6.49%.

It follows parent bank Westpac cutting its two-year fixed rate home loan also to 4.99% as the banking group seeks to lock-in conservatively minded borrowers.

RAMS has also cut its two (5.25%), three (5.29%), four (5.64%) and five year (5.69%) fixed rates by between 10 and 15 basis points.

RAMS chief executive, Melos Sulicich says fixed interest rate home loans and splitting between variable and fixed interest rates are a popular choice for first-home buyers who are looking for repayment certainty when starting out.

“The recent RAMS First Home Buyers’ (FHBs) Pulse Check survey showed around two thirds of first home buyers surveyed intend to take out a fixed interest rate (22%) or split home loan (43%) in the next 12 months,” he says.

“Fixing your interest rate could be a smart option, allowing customers to lock in the certainty of monthly repayments.

“Another option to consider is splitting your home loan between fixed and variable interest rates to make the best of both worlds,” says Sulicich.

RAMS offers a standard variable home loan at 6.35%.