In what has been a shock to brokers, Westpac has written to mortgage brokers informing them RAMS branded products will no longer be distributed to third parties, and only marketed to its 92 franchised stores. The Herald Sun writes “WESTPAC’S funding problems have forced it to shut down a key part of the RAMS Home Loans business. ”
This follows the lowering on the loan value ratios (LVR) on Westpac’s own branded standard variable mortgages on Monday from 92 to 87 per cent. It has also lowered the LVR on more risker low documentation loans to 80 per cent.
The lowering of the LVR will mean home buyers are required to contribute a larger deposit before they can get a loan.
» Westpac cuts brokers from RAMS loans – The Herald Sun, 19th January 2010.
» Westpac turns off tap – The Herald Sun, 20th January 2010.
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