RAMS Home Loans has played down accusations that it has irresponsibly targeted first home buyers in a series of weekend advertisements.
The advertisements focused on the opportunity to for borrowers to combine the recent government boost to first time buyer incentives with a high LVR loan to minimise the need for a deposit.
RAMS spokesperson Melanie Monico told Mortgage Business that two newspaper advertisements run by the lender over the weekend were consistent with RAMS’ previous advertising initiatives.
“The first home buyer segment is a traditionally key market for RAMS,” Ms Monico said, adding that it was not extraordinary that the lender had run the advertisements on the back of the first home buyer grant changes.
The Daily Telegraph reported this morning that the Consumer Credit Legal Centre had labelled the advertisements as “purely irresponsible”.
“It is understandable that the ads could be conceived that way given the current market conditions,” Ms Monico said, however she emphasised that RAMS still had responsible lending practices in place.
“It’s not in the best interests of the borrower or the lender for a borrower to be locked into a loan they cannot service,” she said.
Ms Monico said the lender had seen many would-be home buyers exploring their options with RAMS on the back of the government incentives.
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