As lending conditions continue to tighten and lenders of all sizes generate increasingly flexible and compelling products to attract new borrowers, a non-bank lender has made a move in the opposite direction through pulling one of its award-winning self-employed loan options.
As of 14 April, RAMS is no longer offering its low doc home loan option geared towards the self-employed or small business owners who don’t have the documentation needed to secure a traditional mortgage.
Less than two months ago, RAMS was awarded ‘Best Self-Employed Lender’ at the Australian Lending Awards in Sydney for the third consecutive year.
Upon receiving the honor, Jake Bromwich, MD and CEO of RAMS said, “We know all of our customers have different needs when it comes to purchasing a home or property, and it can be particularly challenging for customers who are self-employed or manage their own business.
“The experience and support the RAMS network offers can make a real difference for self-employed customers wanting to own their own home.”
Moving forward, self-employed loan assessments through RAMS will require full documentation, including the last two years of full tax returns and assessment notices.
A RAMS spokesperson told Australian Broker that the company “continually reviews [its] products” and that the lender “remains committed to self-employed customers and will continue to support self-employed lending” regardless of the decision to stop taking new applications under this current product.
“RAMS will maintain our focus on our core strength – mortgages – with our key objective still being to help our customers into the home of their dreams. Self-employed customers, along with first home buyers, remain our target segments and are key to our RAMS strategy moving forward,” concluded the spokesperson.