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)
• 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)
loan risk management now is going to require that you actually have to save 3% of the total purchase price in order to qualify for a loan. What a novel idea, do you think this just might catch on and become part of a drive for fiscal responsible lending
