Hi Welcome
I think this discussion regarding trusts - albeit interesting - may be sidetracking the thread.
It is also not productive to be discussing matters of lending principle / individual circumstance, no matter which lender, as the casual reader may think 'oh, that's allright, then, I can do this or that' when the only decision a lender can make is on the basis of an appropriate application
In this instance, this thread is about a low doc product (the SE Pro Pack) but the question regading trusts is couched in terms (tax returns) relating to full doc applications.
As I wrote in my previous posts: I have seen an awful lot of badly written trust deeds. The purpose of a trust is whatever it may be, but a lender is concerned regarding security of the loan for which they are responsible.
It's no good setting up a complicated or nonsensical trust and then expecting a lender to accept it and treat it as if one natural person is applying for a loan.
And it's no good setting up a trust which one lender 'on the face of it' will accept but no other lender will have a bar of.
So getting back to the SE Pro Pack and to the point raised by Nth Brisbanite regarding rates:
Dear Nth B: Rates are, at this moment, anybody's guess. Remember back in August when the The Banks urged people not to deal with securitised lenders and named a few names and made alarmist comments regarding interest rates? Haven't The Banks increased their rates at least as much as any other bank or non-bank lender? Isn't a significant portion of the The Bank loan books now securitised as that's where the residential mortgage loan funds have come from in recent years?
If we (any of us, we) choose to stay with, or refinance away from, a lender, we 'pays our money and we takes our choice'. Lending operates in a free market and, as such, will be subject to market forces just as any other commodity fluctuates with market forces. Coffee, wool, iron ore and money - scarecity raises the cost of the raw material.
Fixing a rate gives a borrower the ability to rely on the rate for a particular period of time. However, when rates go down, the person on a fixed rate may be very cross indeed. I have a friend fixed two loans at 17.5% for 5 years and by the end of the five years the general rate was about 9.5%. However, she fixed the rate because she was concerned that rates would rise above 17.5% which they may have done. So overall, she was satisfied with her decision.
Will RAMS or any other lender raise rates? Yes, of coure they will if they have to pay more for the supply. Will they lower them as supply becomes cheaper? Probably. Westpac is the credit provider for RAMS and essentially this means using 'Australian' money. Australian term deposits (not necessarily Westpac) are now being advertised as offering about 8.00% for six month term deposits.
It all comes back to using our own judgement and trying to choose the best available option of the day
Cheers
Kristine