To maintain a balanced and long-term approach to risk management and to ensure that RAMS is in a good position to continue to offer quality service to brokers and customers, RAMS has introduced the following 2 key changes to its credit policy:
• The maximum LVR available through the broker channel will now be 95% (plus LMI capitalisation)
• Any home loan with an LVR greater than 90% will require a minimum 3% deposit sourced from the borrower's genuine savings (excluding the First Home Owners Grant).
The change is consistent with recent moves by other mortgage providers to change credit policies in order to protect business, distribution partners and customers' needs in these challenging economic times.
When are the changes effective?
The new credit policy relates to all new home loan applications received by RAMS Origination after 5.30pm (EST) Monday 23rd March 2009.Any full applications or pre-applications received by RAMS prior to this will not be affected by the policy change and will still be assessed under the 100% LVR credit policy.
What is classified as genuine savings?
Where the LVR exceeds 90%, a 3% minimum deposit is now required which is sourced from the borrower's genuine savings and must be verified with satisfactory evidence.Examples of genuine savings could include:
• personal savings accounts or term deposit accounts
• real estate equity
• tax refunds
• bonuses and dividends
• accessible superannuation (non-preserved portion)Richard Taylor | Australia's leading private lender
Is this the last saga of 100% loan product?
No quiet just give it a week and it will be over and done.
Next will be max 90% LVR nail in the coffin.
Richard Taylor | Australia's leading private lender
I guess that 95% first before 90% LVR…
and it may be compulsory for every buyer to have 20% deposit when buying a property in the future… 2010???GOM
No many lenders have already cut their maximum loan from 95% – 90% already and therefore maybe just a matter of time before most others follow suit.
Richard Taylor | Australia's leading private lender
RAMS still offer the 100% no deposit, just only through the Franchise channel. They have reduced to 95% max through the broker channel only at this stage. 100% is still available through RAMS…no use for you brokers out there though
Ray
Thankfully Raymond there is still another lender for those Brokers who deal with 100% loans so doors not totally closed.
Richard Taylor | Australia's leading private lender
Didnt last long Raymond
RAMS still offer the 100% no deposit, just only through the Franchise channel.
Less than a week after withdrawing its no deposit home loans from the broker channel RAMS Home Loans has today announced the product will also be axed from its franchise network.
Richard Taylor | Australia's leading private lender
Sign of the times Richard
Agreed.
Richard Taylor | Australia's leading private lender
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