Westpac Bank in Australia has been forced to close part of its RAMS home loans business to reduce the availability of its mortgages.
Funding problems have forced the Australian bank to inform its mortgage brokers that RAMS-branded products will no longer be disseminated to third parties, said a report.
This move may prompt many property buyers to compare home loans to search for a new financing option. In Canberra, RAMS loan’s variable rate is the most competitively-priced home mortgage product of the Westpac Group, added the report.
Under the new change, RAMS products will now be marketed through the 92 franchised stores around the country.
"It’s a sad day for the mortgage broking industry and those thousands of home borrowers who have been introduced to the RAMS brand by brokers and who will continue to rely on those brokers to help manage their loan,’’ said Mike Russell, chief executive of Mortgage Choice.
Data from the Australian Bureau of Statistics released last week showed a 5.6 percent decline in the number of loans issued around the country in November last year.