Your opinion on "NEW" RAMS 90% no doc

So for risk analysis - what are the chances of RAMS upping this rate by say 1% in one go?

Just wondering if RBA + 1% is probable?

RAMS' 90% Lo doc product is the one that distinguishes it from other lenders. All their other products are either inferior or the same as mainstream other lenders. If they increased their rate from 8.5% to 9.5% they are going to risk losing a lot of customers, potential and existing. Their exit fee is 1% for 2 years, I think.

There is a possibility that they will increase their rate by 1% but highly unlikely.
 
RAMS' 90% Lo doc product is the one that distinguishes it from other lenders. All their other products are either inferior or the same as mainstream other lenders. If they increased their rate from 8.5% to 9.5% they are going to risk losing a lot of customers, potential and existing. Their exit fee is 1% for 2 years, I think.

There is a possibility that they will increase their rate by 1% but highly unlikely.

Rolf, Is this correct, 8.5% for the 90%
and is it 9.4% for the 85% no ERF.
 
Hiya

Depends :)

On the 90 Lo doc with client paid lmi

I have been quoting 8.70 for 90 % LVRs at 500 or more, and 8.80 for loans between 250 k and 500 k.

On the 80 % lo doc client paid lmi, above 500 k the rate appears to be 8.50

ta
rolf
 
Hiya

Depends :)

On the 90 Lo doc with client paid lmi

I have been quoting 8.70 for 90 % LVRs at 500 or more, and 8.80 for loans between 250 k and 500 k.

On the 80 % lo doc client paid lmi, above 500 k the rate appears to be 8.50

ta
rolf

So is the 90% Lo Doc the same product with the Risk Fee? I would think not because of the LMI?
 
Hi,

Does anyone know if the 'old rams' paperwork is used now with the 'new rams'.
ie. would one still be tied to a income dec with old rams, with a 'new rams' application??

Thanks!

Grant
 
If you are changing an existing loan or adding a loan without refinancing, you have to go to "old rams".

If it is a new loan with new rams, then it's totally separate.

Keep in mind that if you add a new loan to your old rams loan, you could be starting the 4 year term for the early repayment fee all over again. Also, unfortunately existing RHG customers have had their early repayment fee increased recently which makes it more difficult to leave..
 
Sorry Dan

You had me worried there

What 4 year term for Early Repament Fees?

I have checked all my RHG material and can find no reference to 4 years ERF.

RGH had about 100 loan products and some have no ERF at all, some have ERF for the life of the loan and the more modern loans have a 3 year ERF then no penalty after the 36 months anniversary.

However, the self certificated Low Doc loan products had a Loyalty Discount which kicked in after 4 years - is this what you are referring to?

grantc - existing RHG customers have lost none of the flexibility of their loans eg variations to increase the loan, split the loan, merge the loans, fix, switch etc etc

RHG is a completely separate company to RAMS and although variations are still managed by the previous credit services I have been told that while assessing applications for new loans there is no access to previous records.

Does this help?

Cheers
Kristine
 
RHG is a completely separate company to RAMS and although variations are still managed by the previous credit services I have been told that while assessing applications for new loans there is no access to previous records.

That’s very interesting Kristine. I wonder if it could mean that a low-doc application with RAMS may be approved – even if the applicants have recently taken out full-doc loans with RHG and/or Westpac?

Regards - Ben
 
Hi Kristine,

That's good to hear if it's only 3 years instead of 4, I'm so used to dealing with the banks where they lock you in for 4 years.

My concern is if a cient takes out a new RHG loan to access their equity - i.e. to use as a deposit on a new purchase, that this new loan will attract a second 3 year ERF.

Normally that wouldn't be a problem, but my client is worried because RHG increased his ERF to ~$2600 recently. He's rather upset because they've exercised their right to alter fees, something that is not normally done retrospectively with ERFs.

We can't increase the existing loan because the new loan is for investment, but if we take a new split would this attract a second ERF?

Cheers

Dan
 
I have three loans with RAMS, with a LVR of about 60% on $950,000 of valuations.

About nine months ago I think, something hapened (I obviously wasn't on the ball at the time) and all my loand are now with RHG?

I can hardly get hold of my 'friendly' RAMS manager anymore (never could anyway) and the service and cost of RHG is pretty shocking, actually.

I have no idea whats happened and I just want to get out. I am paying something like 9.50%, well, which is a waste of money!

Can anyone explain? Because I feel like I've been totally ripped off and abused.

By the way, any one had any luck trying to "do a deal" with RHG (discounts, changes to rates etc..?) I asked and was basicaly told to jump in the lake!
 
Hi Nicko

There has been plenty of press, news releases, and direct correspondence explaining what was happening sent to all previous RAMS borrowers

You may even find a letter or two was sent to you!

You can 'read all about it' on the www.rhgl.com.au website through the Shareholders portal

The RAMS brand names and origination services were taken over by Westpac on 4th January, 2008.

All loans previously under the RAMS banner are now owned by RHGL - obviously, there can't be two companies trading under the same brand name.

If you have RHG Low Doc loans more than two years old you can still do what you could always do - 'switch' the loan products to another self certificated loan product ie the RHG SE Pro Pack, or when you have tax returns, 'switch' to any full doc loan

The RHG Service Centre is at 1300 658 489 and the operators are just as helpful as they ever were.

So instead of feeling 'ripped off and abused', why not explore your options?

If you previously dealt with a RAMS franchise then simply ring the franchise office directly. If you previously dealt with a broker they may no longer be accredited with RHG and / or not yet accredited with RAMS.

The Service Centre is your most direct route to information on your current options.

Cheers
Kristine
 
I heard that this 90% lo-doc product being axed by the end of the month, any truth to that as couldn't see any info up on their website?

What will be the highest LVR lo-doc product that RAMS will still be offering if the go stop the 90%?
 
Hiya

I believe the sun set date is 27 jun for 85 and 90s lo docs, we have been pedalling very hard to get out pipeline deals finalised


80 %s will still be ok

ta
rolf
 
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