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The non-bank lender has said the offer would enable brokers to provide their investor clients “much needed financial relief”.
Non-bank lender Resimac has announced investors and self-employed Alt Doc borrowers would have access to reduced rates and a simplified pricing structure that would supply increased savings.
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The organisation revealed investors would be the biggest winners from its “new spring offer”, with savings available on its Prime Full Doc and Prime Alt Doc products.
The non-bank lender said there would be standardised pricing across borrowers, both owner-occupier and investor and loan types, both principal and interest (P&I) and interest-only (I/O), for Prime Full Doc products with up to 80 per cent LVR and all Prime Alt Doc products.
Resimac said: “This means eligible investors who apply for an I/O loan can get the same low rate as the equivalent owner-occupier P&I borrower – a discount of up to 65 basis points.”
The organisation confirmed the Prime Full Doc variable rates start from 6.14 per cent, with a 6.44 per cent comparison rate, along with simplified Prime Alt Doc pricing to just one flat variable rate of 6.99 per cent per annum and a 7.02 per cent comparison rate.
The simplified and reduced rates available for borrowers have been further bolstered by Resimac having recently lowered its serviceability buffer to 2 per cent and shading on rental income reducing from 20 per cent to 10 per cent.
General manager of distribution and marketing at Resimac, Chris Paterson, said the new offer would enable brokers to provide their investor clients with much-needed financial relief.
Mr Paterson said: “We’ve levelled the playing field for investors. Their rates are usually higher than the equivalent owner-occupier’s, and the difference in mortgage repayments can be considerable. Our standardised pricing means they now get offered the same low rate.
“We’ve also looked at how we can help investors trapped in high-interest loans because of tough serviceability requirements – especially those rolling off a fixed rate.
“These customers often don’t get the benefit of their lender’s lowest pricing for new customers. We offer them a softer landing by assessing with a lower 2 per cent servicing buffer, 90 per cent of rental income and negative gearing.”
The non-bank lender said self-employed owner-occupiers would also get access to revised Prime Alt Doc pricing with rates reduced by up to 35 bps, on top of Resimac’s other changes to its Prime Alt Doc offerings such as the introduction of unlimited cash out no matter the loan size, which was previously capped for loans of more than $1.5 million.
Mr Patterson added: “We’re providing brokers with real solutions to help their clients avoid the dreaded ‘mortgage prison’. Australians are under immense financial pressure, and with a mortgage typically being their single largest outgoing, brokers are needed more than ever to help them find savings opportunities.
“Brokers can use our debt consolidation option to help clients with other bills, too. Consolidating debts into their mortgage means they can pay off high-interest liabilities like credit cards and car loans in one fell swoop, which can be a huge relief for borrowers.”
Resimac confirmed that its spring offer is available for new purchase and refinance applications from Tuesday, 15 August until 31 October 2023.
[Related: Resimac announces leadership changes]
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