RAMS Cash Out Policy on IP?

Discussion in 'Property Finance' started by albanga, 9th Jun, 2015.

  1. albanga

    albanga Member

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    Hey Brokers,
    Anyone familiar with RAMS cash out policy at 95%?
    A friend of mine purchased an IP with RAMS around 4 years ago at 95% and paid the hefty LMI costs.
    Keen to utilise this again and pay the adjustment but with changes to the lending landscape this may be quiet difficult I am guessing.
     
  2. Shahin_Afarin

    Shahin_Afarin Finance Broker

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    Why do a cash out at 95% when there is little cash and a lot of LMI in that pie?
     
  3. Rolf Latham

    Rolf Latham Member

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    RAMS policy hasnt yet been bumped by the APRA cart

    ta

    rolf
     
  4. albanga

    albanga Member

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    It was my understanding that if you had already paid LMI at 95% then there would be an adjustment of say a few thousand to utilise at that again.

    On a 400k loan that extra 5% allows you to access an additional 20k of equity. Appreciate if the LMI adjustment is going to be hefty then it's not worth it but again I thought it would not be if already paid.
     
  5. Brady

    Brady Big 4 Banker

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    You're bang on will receive credits for the LMI already paid. Issue will be how the application is submitted. Cash out @ 95% can be a tough gig :(
     
  6. DaveM

    DaveM KFC Buyers Agent

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    From my recollections on my rams loans, cash out was limited to 90%
     
  7. tobe

    tobe Mortgage Broker

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    cash out limited to 90% including LMI, or without cash out up to 95% plus LMI 'dollar for dollar' refinancing.
     
  8. albanga

    albanga Member

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    Thanks everyone, very much appreciated.
     
  9. remingbi

    remingbi Member

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    Is rams still treating ofi debt at actuals?
    thanks
     
  10. tobe

    tobe Mortgage Broker

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    rams has always added a small buffer. While they have increased their serviceability rate, they haven't yet changed the way they assess OFI debt.