Anyone heard what % RHG are cutting rates by?
nothing yet.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Just phoned RHG advised that have rate cut under review will either now this Friday or next week!
everyday they delay = more millions in interest
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yes only 7 months to go before i can get away from these rip off merchants – free to refinance and never to return to a non bank lenda again.
Vic
You are definately correct with your description of the former RHG.
Richard Taylor | Australia's leading private lender
RAMS have reduced their rates by 1%
http://www.lendingcentral.com/2009/02/05/rams-passes-on-the-full-1-pa-rate-cut-to-customers/Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks for that news Terry.
My posiition:-
I have one loan with CBA (5.19%), one with RAMS (5.54%) and one with RHG (8.68%).
If I accept RAMS re-finance offer of the RHG loan (a loan of about 150k) this will reduce the rate on this loan to 5.24%.
Across 3 properties the interest rate cuts have resulted in the possibility of a surplus of gross rent over interest expense of more than 15k pa. Taking out other costs the portfolio (hate that term) will then be close to cashflow neutral.
If we get another cut (interest rate futures are saying 100 basis points cut by May 2009) any further interest rate reduction should be straight cashflow.
Now to guess how bad the economy/unemployment will become later this year (to consider whether income from self-employment and/or rental income will fall substantially justifying selling the last IP now albeit slightly cashflow positivel).
RAMS cut by 1% but RHG and RAMS are different companies. Still waiting to hear from RHG.
RHG Humor
“RHG is in the business of helping people achieve their financial goals and we believe this rate reduction combined with secure funding will help our customers in these difficult times and also place RHG top of mind for borrowers,” Mr Sulicich said.
Vic
You only included part of the quote.
The rest read 'place RHG top of mind for borrowers and increase my annual salary and bonuses with the interest fat we have earned by holding back on past rate reductions for borrowers, Mr Sulicich said' lol.
Richard Taylor | Australia's leading private lender
When I did a news search on RHG and interest rates in the last few weeks this is all I came up with. No mention of interest rate cuts yet.
http://www.brokernews.com.au/contents/news/32105/details.aspx
Client sues RHG over exit feesBy Agnes Gajewska | Monday, 19 January 2009A disgruntled client has launched legal action against non-bank lender RHG Home Loans over her early cancellation fee.
The action against RHG is being led by client, Emily Hamilton, who was faced with a $12,000 exit fee after she sought to refinance her low-doc loan, the Australian Financial Review reported.
The case is to be heard at the Victorian Civil and Administrative Tribunal, at which time Hamilton will argue that the exit fee exceeds the company's reasonable costs.
She will also argue that the interest rate on the loan – which is 0.99% higher than when she took it out in July 2007, despite a 2% drop in official cash rates – is unreasonable.
Hamilton's legal representation, the Consumer Action Law Centre in Victoria, claimed hers was not an isolated case.
Co-chief executive of the Law Centre, Carolyn Bond, told the AFR that phone lines had been inundated with client complaints against RHG.
"We've had calls from hundreds of consumers about the same company," she said.
RHG spokesman Matthew Horan said the company did not comment on individual cases however told the AFR that exit fees are calculated to cover overhead costs incurred for writing a loan, and disclosed at the time of contract signing.
"This case has no merit at all and we will defend it vigorously," he said.
RHG, formerly RAMS Home Loans, is currently in wind-down mode after Westpac Banking Corporation acquired its brand and distribution network in 2008.
According to the takeover conditions the group is prohibited from writing new loans until November 2010, but continues to service its $10bn mortgage book.
Westpac is funding loans through the RAMS franchise.
ASX Announcement Thursday, February 5, 2009
RHG Unaudited Half Yearly Profit Guidance and General Update
RHG Limited (previously known as RAMS Home Loans Group Limited) wishes to update the market on recent performance with unaudited profit guidance. RHG Limited expects to announce a consolidated half yearly net profit for the half year ended 31st December 2008, (after provision for tax), in the range of $65 million to $70 million.
Just spoke to RHG they are passing on the full 1% cut but for Lo Doc LOC only .80% cut and not passing on until 23 Feb 09. That is why they are making a profit on our money. Mongrels I hope they go down when everyone refinances away from them.
7 months of pain left!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
