Westpac reduces home loan purchase options

Westpac has been forced to shut down part of its RAMS home loans business, reducing the availability of its mortgages.

Funding problems have forced the bank to notify mortgage brokers that RAMS-branded products will no longer be distributed through third parties, the Herald Sun reported.

The development may prompt prospective property buyers to compare home loans in search of new financing options. In Canberra, the variable rate on a RAMS loan is the Westpac Group’s most competitively-priced home mortgage product, the newspaper noted.

Under the changes, RAMS products will now only be marketed through 92 franchised stores spread 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,’’ Mortgage Choice chief executive Mike Russell told the Herald Sun.

Australian Bureau of Statistics data released last week showed a 5.6 per cent fall in the number of home loans issued across the country in November.

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