Great News if you are Stuck

Just thought I would give you an update.

RAMS has now increased low doc limit upto $1,000,000, also residential loans for developments, this is massive.

However one stipulation, your accountant must sign off on your income. I have used this product before, low interest rate and excellent product.
Accountants are off the hook, its in the fine print.

This is an excellent product and a very cheap option if developing


MTR

 

The reason I love RAMs as a developer using residential finance is I don't have to sell any OTP prior to building

The developer next door has used commercial finance far more costly, prior to commencing his build he had to sell 1 townhouse to meet bank/commercial conditions
Just shows you can look outside the box and save money, time and keep moving forward making money work for you

 

What is their max number of units you can do with that deal @MTR?

 

I know they do 4, could be more, give them a call

 

This has to be better than doing private finance

 

When it says 'low doc' - what is the definition and criteria of 'low doc'?
Is it case by case?

 

*reliant on being self employed with an accountant willing to sign off on your income (which if you have sufficient income for the accountant to be willing to declare, you'll likely have full financials to save 1%+ on rate)

Self declaration of income based products are always useful if there's a niggling issue with your financials, rapid increases in income etc of course.

 

Thanks @Rolf Latham.

So is low doc irrelevant for someone on PAYG?
Or could there be some benefits for PAYG person also?

 

For the most part - not that relevent for most PAYG. The exception being for commercial low doc - which can be used to push serviceability indefinitely for PAYG or self employed borrowers. I've written about these products in the commercial section of the forum.

 

Bit of a catch 22 isn't it? If you had a legit accountant to sign off on it, you wouldn't need the product anyway?

 

Can be handy if you aren't ready to lodge to ATO because you are holding off until deadline.
Also what your business income is and what you end up lodging to ATO can be vastly different in regards to all the deductions you can claim.

 

As a developer you can have projects ready go but did not actually sell prior to the financial year and that income can not be realised, this product is very handy.

Regardless if I can go full doc or not, this product is excellent because its just very easy, no jumping hoops, and you can go resi loan and save money.

In this current environment its a nice one to have up your sleeve.

 

Just because there is some sort of disclaimer doesn't mean accountants are off the hook. They are very much on the hook with this sort of thing.

 

I am not so sure? How many would go to court with this disclaimer in place?? Not me.

Same as accountant preparing tax, does accountant ever wear liability?

At the end of the day the accountant signs off on income and in part is reliant on the information he/she is given.

My accountant knows our financial position but I am providing expected outcome, there are never guarantees either?

 

What does the disclaimer say?

The accountant could be sued on a few angles:
- client not being able to afford the loan
- broker
- lender

Especially where overstating income is involved.

I am not criticising the low doc concept - just that point you made about accountants 'being off the hook' as this is not the case.

 

Its been brilliant for me, I have used it for my Thomastown project and I expect I will continue to use where necessary. Its cheap money and more important I don't have to jump hoops. In current environment this certainly comes in very handy.

 

1mil to 80% with accountant dec. 70% cash out.

With bas unlimited. 1 year abn 70% max. No requirement for gst reg, but obviously with income over 75k you need to be registered.

Account declaration signs off on rental income too. No need to provide rental statements.