Resimac sharpens offering for self-employed and specialist borrowers
Resimac has reduced the interest rates across its Prime Alt Doc and Specialist range of home loans. It's a bid to help support the self-employed and those who have been affected financially from the COVID-19 crisis, with access to credit at a time when it could make a greater material difference.
Resimac has cut all Prime Alt Doc fixed rates up to two years and 80% LVR. Resimac Prime Alt Doc now starts from 3.95% p.a.* up to 80% LVR (2 years fixed, OO, P&I), a reduction of 14 bps. All Resimac Specialist Clear Full Doc rates have been significantly reduced and all other Specialist rates above 80% LVR also reduced. Resimac Specialist now starts from 3.84% p.a.* (Clear Full Doc, variable, P&I, OO, up to 60% LVR).
Resimac Head of New Zealand, Luke Jackson, said the non-bank lender was looking to help segments of the market often overlooked by the major banks during a critical period of the nation's economic recovery.
“Our Specialist rates are some of the sharpest in the market, giving as many customers as possible the chance to get back on track. When the time comes and they’re in a stronger financial position, we can facilitate their transition into Prime loan products as well.
"In our experience, borrowers in this boat aren't bad money managers. They've simply been caught up in difficult circumstances and had to do the best they could. As conditions improve and the economy gets back into gear, they're on the road to recovery and our Specialist home loans can help accelerate this," Luke said.
For small business owners, Resimac's range of Prime and Specialist Alt Doc products also have the added benefit of accepting alternate forms of income verification to help highlight the most recent performance of the business.
With many businesses experiencing muted trading activity throughout the COVID crisis, alternate methods of income verification, including business bank statements, GST returns and accountant letters, can often demonstrate the improved business and trading conditions more reliably than the standard two years' worth of documentation required for Full Doc loans.
"This may be opportunity to consolidate various debts, refinance, or purchase property. This finance could help small business owners in particular to purchase new supplies or new equipment that will help them make the most of increased consumer confidence and demand."
These changes came into effect from 9 June 2021.
*All advertised interest rates are available for new eligible loans and are subject to change. Your interest rate may differ depending on borrower category, security use and how much you borrow relative to the value of your property. Terms and conditions apply to all loan features. Final approval is subject to credit assessment. Valuation fee is at the cost of the valuation. Annual fee $0. Settlement fee $475. Discharge fee $495. Details about our products and our full interest rate disclosure for new and existing loans is set out in our Interest Rates Disclosure document. A schedule of our fees and charges is available on the Costs of Borrowing, Forms, and Terms page.