RAMS have just released a new 80% LVR ‘No Doc loan’
No Doc loans are good because, unlike Low Doc loans, no income declaration is needed.
Some more info:
– Rates start at 7.24%
– Need to be self employed for 2 years (ABN or accountant’s letter)
– or if professional property investor (A & L 2.5 times loan amount)
– Residential Investment Properties only
– Regional areas may be acceptable
– No LMI payable for loans under $500,000(up to now most No Doc loans have been to a maximum of 70% LVR)
Terryw
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Parramatta
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sounds promising. what are the early exit penalties like?
Just called RAMS asking about their 80% no doc loan.
Deferred establishment fees (if break the loan)
In Years 1 and 2-2%
Year 3-1.5%
Year 4 onwards-nil
$395 application fee + $300 documentation and settlement fees
$96/p.a. account service fee
Can redraw funds back out
7.24% pa interest for first 4 years then 6.9% pa
Ajax
I have just refinaced through Macquarie Bank on a 80% no doc loan the rate is 7.25% for the first year then it reduces by .25% in the first and another .25% in the second year.
Nigel Kibel
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Hi Nigel
This was probably a low doc? I beleive that Macquarie’s No Docs only go to 70%. I like Macquarie too, but their exit fees can also be high – but no LMI is payable.
Terryw
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Hi Terry
What does ‘A & L 2.5 times loan amount’ mean?
Do they do this loan for residential construction?Thanks
GrantIt means you must have assets 2.5 times as much as the loan.
Not available for constructions or developments.
Quote from RAMS:
For Investors (Property, Equities etc) who do not require an ABN but support themselves from investments,
– A letter addressed to RAMS from the applicant’s Accountant confirming the majority of the applicant’s income
is derived from investments and that have been for position for at least 2 years is to be provided.
– Applicants who do not have a registered Accountant or Tax Agent must complete the asset and liability section
of the loan application providing details of all investments. The applicant’s net asset position must be at least
2.5 times the loan amount.Terryw
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Parramatta
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Hey Terry ask them if they will do it for a HDT?
Redwing
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorCompanies and Trust structures are ok.
Regarding investor applications and the calculation of assets, Rams will only take into account assets of an income producing nature i.e., real estate, shares, managed funds,savings etc.
Cheers
StevenMortgage Broker
Mobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Just on these No Doc loans – what sort or interest rate and LVR is available to PAYG eaners who don’t have significant assets yet.
Redwing
I have had an email back from RAMS saying they will do HDT, but the loan must be in the same name as the title. cannot have a company trustee and loan in directors name. If personal trustee, then should be ok.
Terryw
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Parramatta
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Originally posted by smunslow:Just on these No Doc loans – what sort or interest rate and LVR is available to PAYG eaners who don’t have significant assets yet.
This loan is only available for self employed. Min 2 years
Most of the other 70% No Docs are also only available to sef employed – but the proof needed is just an ABN.
Terryw
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Parramatta
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Originally posted by Terryw:Redwing
I have had an email back from RAMS saying they will do HDT, but the loan must be in the same name as the title. cannot have a company trustee and loan in directors name. If personal trustee, then should be ok.
Terryw
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Parramatta
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Just send me a blank email, with “subscribe†in subject line.Thanks Terry,
Guess they still dont like doing them after they tried one as they’re too complex for the solicitors at NLS?
did they explain why they dont like a pty ltd trustee, after all they get a guarantee from the borrower?
Who else does loan to a HDT with a Company trustee then?
-I believe Westpac isnt keen on trusts , but Bankwest is ok?
Any others you know of?
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculatorhi redwing
nab,suncorp,and anz don’t have a problem with a unit trust and company pty ltd as I have them in all three and haven’t had a problem but thats with the commercial side of each bank and then flick over when complete to resi lending.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]Yes, Bankwest are one of the best. ANZ do them – sometimes.
RAMS etc will do them with a corporate trustee. The problem is if the title is in one name and you want the loan in another. That is like getting a third party to guarrantee the loan. Thats the bit that causes problems.
Terryw
Discover Home Loans
Parramatta
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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RAMS Pro-pack No Doc, 6.72% No ABN, 80% no LMI over 500k
Looks like the lending market is starting to starve!
G
Hi G,
Isnt the rams pro-pack a Lodoc not a Nodoc?
Thanks
GrantAs far as I know the only thing the applicant has to supply apart from the app form is a self cert, they do not even have to disclose an income figure for affordability purposes.
This I believe, was introduced for a couple of reasons, one being the ATO, the other is for limiting the lenders from looking like bankruptcy peddlers if the borrower goes belly up if that makes sense? I would say its as closer to a ND than a LD
Of course valuations etc are applicable.
Cheers,
GThe Rams Low Doc pro pack has a maximum LVR of 65% up to $500K
80% LVR is available on loan amounts over $500K but the borrower pays the LMI on the full loan amount.
A stated income is required.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
AMP will now accept lo doc loans in company names most other lenders only do it in personal names. there rate is 7.06
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