Hi anyone else here stuck with RAMS – I got caught up in the subprime joke! Now paying the higher rates because of there stuff ups! Can't wait to refinance and get out after 2 years stuck with them!
There are probably a few out there. RAMS was good for some products such as 80% No Docs and 85% Low Docs and now they have the 90% Low Docs, but for the full doc loans they are probably not the best. Don't worry too much as many other lenders had to put up their rates too – Macquarie etc so you may have been hit wherever you went.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi,
I have a loan with RAMS fixed for 5 years, with 3 years left of the fixed period. I have $140k of equity available which I would like to access by doing a variation on the loan, leaving the fixed portion as is and taking out a new loan for the available equity and use that to provide the deposit and stamp duty to purchase another IP. Unfortunately RAMS and RHG refuses to talk to my mortgage broker and are rude to me on the phone. They told me I could not do a variation, they would only let me refinance the whole loan to a much higher interest rate and charge me $5,000 in discharge fees on the current loan. Then they sent me out a loan application form which appeared as though they would allow me to do a variation. After wasting my time filling that in and sending it, they called me once again to tell me they can't do anything for me. So basically because of RAMS situation I am unable to continue buying properties without unneccessary significant financial cost due to having a loan with RAMS. If my loan was with anyone else I would have no problem with the loan variation. Is anyone else in a similar situation.
MangoHi,
Yes, I'm stuck with Rams (RHG) also, unfortunately I'm stuck for another 2 years unless I want to pay the $11k in exit fees they're charging. If you take a look at your June online transaction info, there's been 2 interest rate increase in the space of 15 days (total of 0.24% for June) even though I haven't received any formal notification from them of the interest rises, taking my current interest rate to 9.29% for a full doc, smartway pro pack loan. At this rate, it will be worth my while paying the $11k just to be rid of Rams (RHG).
Any suggestions or anyone in a similar situation? Fixing the rate isn't an option as their new fixed rates I was advised over the phone was a ridiculous 11.25%. (Even though that was not what was advertised on their website (website had 9.9% ) which I've already raised with the ACCC as misleading and deceptive conduct) …..
Any suggestions are appreciated!!!
It will happen to GE Money/Wizard soon. Go back to the conventional bank lender.
I think most people get caught is because mortgage broker generate more commision from non-bank than
bank lender… I assume.
Ajax, do you calculation by including 11k in order to refinance. You can get 8.6-8.7% with bank lender
or 8.47% with bank west for 2 years.I always do due diligence prior to signing the loan.
There a lots of websites that you can refer to.I'm stuck with Rams(RHG) until October when my exit fee drops to 1% of the loan then I'll them them where to shove it and move to a bank. The only reason they get away with increasing the rate whenever they fill like is because of the high exit fees. Things will only get worse as more of the "good" clients get past the high exit fee period and move on to other lenders and they are left with the high risk clients.
hei harb…. that is why I like to deal with bank (traditional lender) rather than non-bank…
I do not have any problems dealing with bank(s) with full doc.
Non-bank lenders are virtually in the verge of collapse… not to mention peppercorn,bluestone, etc…(mortgage spruiker company)…
but mortgage brokers in this forum might disagree….Bank loans are definitely more attractive than most Non-Bank loans at the moment.
Although, First Mac are about to release an 8.77% fully flexible variable loan into the market. As the exit costs are usually higher with most Non-Bank loans, you need to be certain of your intentions of the loan over the reasonable term (first 4 years) to benefit … which means sometimes it can be worth paying a slightly higher rate to get an overall better deal which you can change easily if you have a horror story with the lender or broker. There are a number of banks offering around the 8.6's to 8.8's …. you might want to investigate any reduced interest deals for 1 or 2 years as the exit fees may be incurred for up to and including the 4th year……. read the fine print!I'm finding that there are a lot of people who are in your situation with RAMS. By charging extremely high exit fees they are forcing most people to stay with them. Make sure you do complain to Ombudsman and the office of fair trading as what they are doing is a complete rort!
Have a look around for different options you may save yourself in the end by switching.
I thought that when you signed a loan contract with exit fee. The lender is unable to change it.
Just correct me if I m wrong?guys, RAMS and RHg are completely different lenders now. RHG is loan book with existing customers which takes in no new lending. everyone talking about existing loans with RAMS are only with RHG now, they are completely different entities. Here's a tip, Those looking to get out of RHG can refinance to RAMS (now funded by westpac) , just go to a RAMS franchise, and you'll get part of your ERF's waived. i think it's $2500 for a $350k loan and 20% saving on LMI. i know it's not huge but better than nothing…non-banks provide competition and competition is good, i don't want to see the non-banks go…
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