Non-bank lender Resimac has announced an overhaul of its specialist lending products in a bid to create a more simplified system.
The revamped specialist product range now offers just three products – Specialist Clear, Specialist Plus and Specialist Assist – down from seven.
Each has a single credit impairment level. Previously, Resimac had three specialist products with multiple credit impairment levels.
“Rather than a broker having to decide between three different products and then work out the level of credit impairment, each of our new specialist products essentially represents the applicable credit impairment level,” Resimac chief operating officer Allan Savins said.
“After the product has been determined, all a broker needs to choose is the method of income verification [full doc or alt doc],” he said.
The lender also announced a number of product and policy changes, including increasing the amount of defaults (which will be disregarded up to $2,000), and introducing an interest-only option on all specialist products for owner-occupiers.
In a host of changes, effective immediately, the lender has also reduced interest rates over those announced in early February, and will also deliver reduced risk fees while broadening its LVR bands.
Resimac expects this will reduce the number of potential interest rates and risk fees a broker will need to navigate through.
“This product and LVR rationalisation will see a reduction of up to 55 basis points across our products, delivering a total reduction of 80 basis points on some products since early February,” Mr Savins said.
He added that the changes were designed to “create an improved specialist lending offering that was easier to understand, whilst at the same time maintaining our unique lending solutions that have always been on offer and widely embraced by our loyal network of brokers".
[Related to: Lender’s rate cuts save borrowers up to 55 basis points]