RAMS cuts two-year fixed-rates to 4.99% and waives investment home loan fees as investor demand rises

Mortgage lender RAMS has cut its two-year fixed-rate home loan by 26 basis points to 4.99% as well as reduced its three, four and five-year fixed-rates as it recorded a rise in home loan enquiries from investors.

Its three-year fixed-rate home loan has been reduced by 20 basis points to 5.09%, its four-year fixed rate has been reduced by 25 basis points to 5.39% and its five-year fixed-rate by 24 basis points to 5.45%.

RAMS one-year fixed-rate home loan remains unchanged at 4.99%.

It passed on the full 25 basis points to variable rate borrowers following the May RBA cash rate cut with its lowest advertised variable rate offer being at 5.29%.

RAMS will also waive its $595 application fee and $275 settlement fee for any RAMS home loan "predominantly for investment purposes" for applications received until June 30 2013.

RAMS reported a 23% uplift in the volume of investor customer enquiries to their call centre and online in the first quarter of the 2013 calendar year compared to the same period in 2012 (January to March 2013 versus 2012).

It follows the latest ABS housing finance data for March confirming investors are leading mortgage growth with a 21% increase in investment housing commitments over a 12-month period compared to owner occupied housing commitments at 12%.

Commenting on the rise in investor demand, RAMS chief executive, Melos Sulicich said historic low interest rates and greater competition in the home loans market were “creating opportunities for savvy investors to get into the property market”.

“It is encouraging to see property investment activity on the rise and early indications shows the investor market is set to lead the housing market uplift over the coming months,” he said.

Earlier this week, Aussie Home Loan cut fixed-rates on its Aussie-branded home loan with a 4.99% three-year fixed-rate offering.