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Majors tighten on self-employed borrowers

Majors tighten on self-employed borrowers

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Westpac, St. George and RAMS are the latest lenders to tighten up on their policy for self-employed borrowers.

RAMS Home Loans will require all low doc loan applications to be supported by business activity statements (BAS) for the past 12 months, an ATO lodgement reference number and account statements for the last three months that show evidence of tax payments.

RAMS’ head of product Joanne Reid told Mortgage Business the changes were introduced to bring the company’s policy in line with the competition.

“We are always reviewing our competitive position,” Ms Reid said.

RAMS is not the only mortgage provider to introduce policy changes to their low doc loans.

Last week St George announced that all low doc home loan applications must be supported by a BAS for the last 12 months, the last statement being no more than 3 months old at the date of application.

Westpac also recently implemented similar changes.

Effective from the 23 September 2009, the bank stipulated that all low doc applications must be supported by 12 months worth of BAS as part of the application document requirements.




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Majors tighten on self-employed borrowers
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