Your opinion on "NEW" RAMS 90% no doc

Your opinion on "NEW" RAMS 90% lo doc

The new RAMS, which is now owned by Westpac, has just released their new products. I'm particularly interested in their 90% lo doc and would value anyone else's opinion. Some of its features are:

1. 7.95% variable interest rate.
2. One off mortgage insurance of 2%. This can be written off against tax over 5 years.
3. Low application fee of about $395. Low valuation fee of $200. You may be able to negotiate the application fee depending on the deal.
4. No need to substantiate income but must list assets and liabilities.
5. Must have ABN for 2 years and be GST registered.
6. All other fees and charges are similar to other major lenders.

It appears to be the best 90% lo doc loan around. What do the mortgage brokers and others on this forum think?
 
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G'day North Brisbanite,

The thread title is a little misleading. It mentions NO-DOC yet the thread actually relates to a Lo-Doc facility.

I'm probably like many brokers out there waiting on access to the RAMS website once new agreements are in place with our aggregators.

You mention a rate of 7.65%. This is 0.90% below the SVR of the majors (prior to latest scheduled increases of 0.12% to 0.20%). Are you sure about this rate as it sounds like one hell of a product if this is the case?
Any self employed with ABN/GST reg would dive at it under LO-Doc even if they has supporting documentation.

Do you know if it's for personal borrowers or for companies also?

Regards
Steve
 
G'day North Brisbanite,

The thread title is a little misleading. It mentions NO-DOC yet the thread actually relates to a Lo-Doc facility.

I'm probably like many brokers out there waiting on access to the RAMS website once new agreements are in place with our aggregators.

You mention a rate of 7.65%. This is 0.90% below the SVR of the majors (prior to latest scheduled increases of 0.12% to 0.20%). Are you sure about this rate as it sounds like one hell of a product if this is the case?
Any self employed with ABN/GST reg would dive at it under LO-Doc even if they has supporting documentation.

Do you know if it's for personal borrowers or for companies also?

Regards
Steve

Sorry, Steve. I did have a long talk with a RAMS manager yesterday about these figures and unfortunately I've made a few mistakes. I've just double checked my figures and have corrected my thread. It is a lo doc, the rate is 7.95% and the application fee is $395 not $300. The other thing is that it is a pro pack and only for borrowings above $150,000.

Even with my corrections, it still is a hell of a product. I'm seriously thinking of refinancing. I'm not sure whether it is for companies.
 
It's a bit unusual for the LVR to increase to 90% at the same time as others are reducing their lo doc exposure. The advertised products still state 85% at the moment.

It still looks like a good product, however some people don't want to deal with RAMS anymore. Maybe the 90% LVR and other features can overcome that!


Dan
 
It's a bit unusual for the LVR to increase to 90% at the same time as others are reducing their lo doc exposure. The advertised products still state 85% at the moment.

It still looks like a good product, however some people don't want to deal with RAMS anymore. Maybe the 90% LVR and other features can overcome that!


Dan

Dan, new product only came out yesterday which is why the advertising still states 85%. Once people realise that it is now owned by Westpac they will come back to RAMS.

I have double checked the information & appears to be accurate. I'm getting another broker to do another check as the product seems to be attractive.
 
I'm amazed that Westpac is willing to fund it, its so much cheaper than it's nearest compeditor in the 90% lo doc.

My concern would be that it's a varialble rate and as we've seen recently, lenders don't need an RBA adjustment to increase variable rates.

I can see that a lot of clients will want this one.
 
That's true, and there's likely to be an expensive exit fee too so that you can't run when the rates go up.
Even so, the initial savings should more than offset this risk. There's nothing to prevent the other lender's increasing their lo doc rates either.

Dan
 
That's true, and there's likely to be an expensive exit fee too so that you can't run when the rates go up.
Even so, the initial savings should more than offset this risk. There's nothing to prevent the other lender's increasing their lo doc rates either.

Dan

Just checked their termination fee. It is 1% if the loan is terminated within 3 years. This is less than the 2% under the OLD RAMS.

You can get a fixed rate, I think. Product is looking better all the time!!

I'd be interested in Kristine..'s comments - she owns a RAMS franchise, I think. Richard Taylor, have you got any thoughts on this product? Advantages, disadvantages??
 
Do you mind me asking who your RAMS contact is.

I find it hard to believe they are offering 90% on these terms. I'd like to ask him myself.

A few questions:

- why would Westpac bankroll a lo doc offering better terms than their own, and at such a strong discount to its competitors. Sure, one could argue this is part of the "new RAMS" establishing of itself back in the market place. But it seems self defeating to offer such a heavy discount without some serious conditions attached.

- watch out for the RAMS standard variable rate. The 0.7% discount on the SVR might mean RAMS' risk management will involved more aggressive SVR rises compared to its competitors.

- is it interest only and for investors as well as OOs.
 
Do you mind me asking who your RAMS contact is.

I find it hard to believe they are offering 90% on these terms. I'd like to ask him myself.

A few questions:

- why would Westpac bankroll a lo doc offering better terms than their own, and at such a strong discount to its competitors. Sure, one could argue this is part of the "new RAMS" establishing of itself back in the market place. But it seems self defeating to offer such a heavy discount without some serious conditions attached.

- watch out for the RAMS standard variable rate. The 0.7% discount on the SVR might mean RAMS' risk management will involved more aggressive SVR rises compared to its competitors.

- is it interest only and for investors as well as OOs.


WinstonWolfe, just go to your local RAMS branch and they will confirm this information. They don't seem to mind giving the information over the phone. The person I spoke to did double check the information with his boss who is the franchisee. As I asked him questions, he looked up the answers from an email that he received from head office.

- is it interest only and for investors as well as OOsIt definitely is interest only - I've got their flyer in front of me. It definitely is for investors so I assume it's also for OOs

I can't answer the other questions. Can someone else help me?
 
NB realising the info on the website is out of date

Option A
http://www.rams.com.au/default.asp?...all+our+products/rams+line+of+credit+pro+pack

Option B
http://www.rams.com.au/default.asp?page=/our+home+loans/all+our+products/rams+low+doc+line+of+credit

But this specifically shows one as full doc to 90 and the other is low doc to 80 lvr

Rates are seeming very low unless its a honeymoon low doc and steps up after a year.

Why not go to the rams office and tell him you want a comparison rate schedule and to apply for one and you want the info. Might provide you with further info - in the short term that is until it all comes to light
 
NB realising the info on the website is out of date

Option A
http://www.rams.com.au/default.asp?...all+our+products/rams+line+of+credit+pro+pack

Option B
http://www.rams.com.au/default.asp?page=/our+home+loans/all+our+products/rams+low+doc+line+of+credit

But this specifically shows one as full doc to 90 and the other is low doc to 80 lvr

Rates are seeming very low unless its a honeymoon low doc and steps up after a year.

Why not go to the rams office and tell him you want a comparison rate schedule and to apply for one and you want the info. Might provide you with further info - in the short term that is until it all comes to light

Those links you sent me are from RAMS website which is out of date. I've already been to a RAMS office who have given me their latest information which was only released yesterday. I had a 2 hour discussion with one of their managers on Monday. Was on the phone to them today for another half an hour confirming the information which I've posted. I do intend to apply for the 90% lo doc which appears to be everything that I need.
 
G'Day

Well, frankly, I'm gob smacked at the scurrilous innuendo written in this thread.

It’s easy to write absolute drivel when you are hiding behind a nom de plume.

Nth Brisbanite has asked for a serious response to his questions and some posters have written a Kim Philby novel! Good grief!

I have written about this product in other threads and as I have mentioned, it is an almighty task to completely upgrade and revamp all information on a website. Overlooking or leaving information which is of a lesser advantage to the consumer is regrettable however I have written to my Operations Manager advising that some people are confused because the information has not yet been updated.

Technical Information:

The Self Employed Pro Pack is a Low Doc loan. Eligible borrowers are those who do not have or who choose not to provide tax returns or other financial information.

The borrower DOES NOT need to have an ABN nor do they need to be registered for GST.

However, if a borrower does have an ABN and wishes to declare it, then the ABN must have been registered for more than two years and if relevant, registration for GST would be applicable.

As a Low Doc loan a statement must be made regarding Income, Assets & Liabilities, and usual documents as required for eg Identification, Contract of Sale, Rates notice of an existing property offered as security for the loan, etc Supporting documents vary depending on the circumstances however financial documents are not required.

The product is available for loans of more than $150,000 and up to $1,000,000 per security. The loan can be more if more than one security is provided.

If the amount of borrowings is more than 60%LVR or more than $1,000,000, then mortgage insurance will be required and is paid for by the borrower. The borrower can pay this separately or capitalise it to the loan provided that the gross loan does not exceed 90%LVR


This is a Professional Pro Pack product. There is an annual fee of $300 and the product has unlimited deposits (min $500) and redraws (min $100). The borrower can register for internet banking and transfer money between their ordinary bank account and their home loan as many times as they like. Loan payments are made by direct debit or salary crediting.

The product can be Interest Only for up to 5 years. After two years, if anything better comes along, the borrower can ‘switch’ to any other Low Doc product or, if they want to provide financials, can ‘switch’ to any Full Doc loan. ‘Switching’ costs a set of loan documents, usually $295.

The Application Fee of $395 includes provision for loan documents and settlement fees. The borrower pays a contribution of $200 towards the cost of the valuation.

Loan Statements are issued each six months but with internet facilities the loan can be viewed in real time and managed (deposit / redraw) by the borrower.

If the loan is paid out within three years then 1% of the original loan amount (plus any approved increases) would be payable.

‘Switching’ loans is not closing a loan, it is a benefit provided by the lender to assist customers whose circumstances may have changed after two years – or there may be products more applicable to the customer.

So it is very straightforward. RAMS has always been known as a very ‘user friendly’ lender with a ‘let’s make it happen’ attitude and the changes now and in the pipeline will enhance consumer accessibility to competitive home and investment loans.

Westpac has made a significant investment in purchasing the Franchise Operations – there are now more than 100 retail operations across Australia. We are well positioned to be able to be ‘local’ walk-in facilities which can offer the customer a real choice in loan products.


Regarding the calculation of the Lenders Risk Fee: This is not a flat rate but depends on the loan amount and the total exposure, and is calculated by the mortgage insurer and not by the lender. It is not, as Nth Brisbanite indicated earlier, a flat 2% of the loan amount. The insurance premium can be capitalised to the loan, but as I have mentioned, the total loan amount cannot exceed the 90%LVR

New product brochures are now available and the above information is a Plain English version of how the product is described in the brochure. I am happy to post copies to those who are interested, or keep an eye on the website and I am sure it will be updated soon!

Regards

Kristine
 
G'Day

Well, frankly, I'm gob smacked at the scurrilous innuendo written in this thread.

It’s easy to write absolute drivel when you are hiding behind a nom de plume.

Nth Brisbanite has asked for a serious response to his questions and some posters have written a Kim Philby novel! Good grief!

I have written about this product in other threads and as I have mentioned, it is an almighty task to completely upgrade and revamp all information on a website. Overlooking or leaving information which is of a lesser advantage to the consumer is regrettable however I have written to my Operations Manager advising that some people are confused because the information has not yet been updated.

Technical Information:

The Self Employed Pro Pack is a Low Doc loan. Eligible borrowers are those who do not have or who choose not to provide tax returns or other financial information.

The borrower DOES NOT need to have an ABN nor do they need to be registered for GST.

However, if a borrower does have an ABN and wishes to declare it, then the ABN must have been registered for more than two years and if relevant, registration for GST would be applicable.

As a Low Doc loan a statement must be made regarding Income, Assets & Liabilities, and usual documents as required for eg Identification, Contract of Sale, Rates notice of an existing property offered as security for the loan, etc Supporting documents vary depending on the circumstances however financial documents are not required.

The product is available for loans of more than $150,000 and up to $1,000,000 per security. The loan can be more if more than one security is provided.

If the amount of borrowings is more than 60%LVR or more than $1,000,000, then mortgage insurance will be required and is paid for by the borrower. The borrower can pay this separately or capitalise it to the loan provided that the gross loan does not exceed 90%LVR


This is a Professional Pro Pack product. There is an annual fee of $300 and the product has unlimited deposits (min $500) and redraws (min $100). The borrower can register for internet banking and transfer money between their ordinary bank account and their home loan as many times as they like. Loan payments are made by direct debit or salary crediting.

The product can be Interest Only for up to 5 years. After two years, if anything better comes along, the borrower can ‘switch’ to any other Low Doc product or, if they want to provide financials, can ‘switch’ to any Full Doc loan. ‘Switching’ costs a set of loan documents, usually $295.

The Application Fee of $395 includes provision for loan documents and settlement fees. The borrower pays a contribution of $200 towards the cost of the valuation.

Loan Statements are issued each six months but with internet facilities the loan can be viewed in real time and managed (deposit / redraw) by the borrower.

If the loan is paid out within three years then 1% of the original loan amount (plus any approved increases) would be payable.

‘Switching’ loans is not closing a loan, it is a benefit provided by the lender to assist customers whose circumstances may have changed after two years – or there may be products more applicable to the customer.

So it is very straightforward. RAMS has always been known as a very ‘user friendly’ lender with a ‘let’s make it happen’ attitude and the changes now and in the pipeline will enhance consumer accessibility to competitive home and investment loans.

Westpac has made a significant investment in purchasing the Franchise Operations – there are now more than 100 retail operations across Australia. We are well positioned to be able to be ‘local’ walk-in facilities which can offer the customer a real choice in loan products.


Regarding the calculation of the Lenders Risk Fee: This is not a flat rate but depends on the loan amount and the total exposure, and is calculated by the mortgage insurer and not by the lender. It is not, as Nth Brisbanite indicated earlier, a flat 2% of the loan amount. The insurance premium can be capitalised to the loan, but as I have mentioned, the total loan amount cannot exceed the 90%LVR

New product brochures are now available and the above information is a Plain English version of how the product is described in the brochure. I am happy to post copies to those who are interested, or keep an eye on the website and I am sure it will be updated soon!

Regards

Kristine

This is great information and backs up most of what I got from my local branch. I got the 2% mortgage insurance wrong but everything else that I have mentioned appears to be dead accurate.

I've spent 2 weeks looking for 90% lo doc/no doc loans and this appears to be easily the best in the market place.
 
If the amount of borrowings is more than 60%LVR or more than $1,000,000, then mortgage insurance will be required and is paid for by the borrower. The borrower can pay this separately or capitalise it to the loan provided that the gross loan does not exceed 90%LVR... The insurance premium can be capitalised to the loan, but as I have mentioned, the total loan amount cannot exceed the 90%LVR

Regards

Kristine

So does that mean the LVR of 90% mentioned on the website is technically correct? Or should they be advertising the 60%LVR rate?
 
I've spent 2 weeks looking for 90% lo doc/no doc loans and this appears to be easily the best in the market place.

So would you be happy paying the LMI and going all the way to a 90%LVR? Can i ask if you intend to invest that money in property or shares / managed funds?
 
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