Resimac Financial Services has announced that mortgages with LVRs of up to 80 per cent will no longer need insurance.
The non-bank lender has removed mortgage insurance for its standard prime full-doc loans to 80 per cent LVR and its SMSF loans to 70 per cent LVR.
Resimac’s standard full-doc loans to 80 per cent will also no longer require credit scoring and will have no limit on consolidation, both of which were previously imposed by LMI providers.
Allan Savins, Resimac’s chief commercial officer, said the removal of mortgage insurance at these LVR levels has given the lender the flexibility to amend a large number of policies.
“We are always striving to create products that give us a real point of difference in the marketplace,” he said.
“These changes have further improved our competitive position when it comes to flexible lending solutions.”
Resimac has also increased its maximum loan amount to $1.5 million, and will accept late payments of up to seven days on refinances as well as defaults of up to $500 for a maximum of two listings.
“One of the key advantages of these policy changes is even more brokers will qualify for a prime home loan, whereas previously they may have had to obtain a specialist product solution,” Mr Savins said.
Earlier this month, Resimac unveiled a revamped specialist lending product range in a bid to create a more simplified system.
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