RHG CUSTOMERS – rate cut not .75%

Why cant  you  people pass the full amount on to your loyal customers?????????????????????????????????????????????????????
Then again you were all quick enough to raise them out of sequence with the reserve bank now they are lowering the rates it takes you an eternity to lower them.
Must be making a pretty hefty profit ????????????????????????????????

Terry,
Just for my curiousity.. why so many people were getting their loans from RHG?? Are they any significant benefits compared to bank lenders?
Cheers

The reason so many people are with RHG is that they were former RAMS customers. When the old RAMS went broke Westpac bought the RAMS brand name and shopfront for a bargain basement orice of $140 Million. But left the Billion $ 10 plus mortgage book with the former RAMS holding company RHG. They are not allowed to sell any new mortgages for a period of 3 years there are 2 years left to go.

RHG increased their termination fees considerably so it is difficult for some people to leave.refinance. Now that rates are coming down they are not passing on the full amount. Even though they had numerous rises outside of RBA rises on the way up.

With the last RBA cut of .75% Both RHG and Rams announced a .60% cut on the same day Friday Nov 8th RHG gave Low Doc Customers only .55%..

I believe that RHG is not allowed to undercut RAMS because of the Westpac rescue deal.

Thanks for info..
Well… ING is even WORSE… only cut by 0.55%
It is just ridiculous… claiming themselves as AA rated and one of the biggest bank in the world…

As already mentioned, RAMS  (the old one) did indeed have a couple of excellent lo doc products, and were very popular lenders for first home buyers that wanted to borrow 100% finance – not something done with the mainstream lenders in most cases. Rams were huge with the mortgage broking industry, having the significant majority of their loans written and recommended via this channel.
And yes, it did go pearshaped, along with so many other lenders since.
Rams exit fees have always been steep, and in most cases, I cannot imagine anyone having gone with a rams loan if they were considering leaving in the first few years. Unfortunately, they have stuck it to their clients since their collapse.
Cant see any reason anybody would have dealt with rams after late last year unless they got bad advice, were sucked in, or desperate. A lot of the franchises played 'spin doctor' when their collapse was iminent, and in the end, realised they needed to use their mortgage broking aggreggation partner (CHOICE) to avoid their own loans, and steer potential clients to banks or elsewhere, and also offer this to panicky clients too so they could keep their 'trails' and commissions.

For what it's worth, think how worse it is for people who blew money buying RAMS shares!!!! Millions of dollars never to be seen again – ($3k for me     )

I would envisage down the track RHG will have to try and be proactive at keeping some of their loan book, otherwise they will literally have nothing, but it sounds like they are not trying real hard at the moment.

For all stuck in a high exit fee loan (or for that mater, a fixed rate loan with any other lender) stick at it until you can exit economically – it makes the most sense.

Cheers

The new Rams (Westpac owned) has mostly the same products as the old Rams (now RHG) did. As some posters mentioned above, they were/are excellent products. Rams is still one of the only lenders doing 100% loans at 5.89% and lo doc at 6.89% (before the cut) with only ABN required for 2 yrs , hence the delay brokers are having with Rams at the moment.

PosEnter, yes RHG fund there money from overseas. This has always been the RHG model when Kinghorn owned the company. Things were going gangbusters right before the float, they had too many applications for them to handle and needed to grow. You have to wonder though how they didn't see the collapse coming with funds coming from overseas. Instead the staff all buy shares and the owner runs off with $500mil or whatever it was.

Solidgoldinvestment pretty much sums it up in his post also….

http://www.lendingcentral.com/2008/12/09/woman-takes-lender-to-court-over-fees-and-rates/

RaymondBDM,

it was another Raymond that got me into this RHG mess in the first place-he fleeced me.

After listening to the giraffe and the hippopotamus years ago when I invested in Estate Mortgage you think i would stop following the financial recommendations of talking animals on TV.