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Resimac drops three construction loans, updates policy

by Ezekiel MacNevin4 minute read
Resimac

The non-bank lender has announced the removal of three construction loan products, as well as changes to application requirements.

Effective March 1, Resimac said it will no longer accept applications for its Accelerate Red Construction, Accelerate Red Alt Doc Construction, and Accelerate Prime Alt Doc Construction products.

The changes have reportedly transpired off the back of substantial demand for Resimac Accelerate construction loan products to “ensure a balanced portfolio is maintained”, according to the non-bank lender.

The lender is still offering other construction loan products: Accelerate Prime Full Doc Construction and Accelerate Prime Full Doc Plus Construction. 

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"For our Resimac Accelerate Prime Full Doc and Accelerate Prime Full Doc Plus Construction products, a minimum NSR of 1.10 is required where the LVR is [less than or equal to] 90 per cent, and a minimum NSR of 1.35 for loans where the LVR is [greater than] 90 per cent," the lender said. 

These changes don't apply to other Resimac products. 

Resimac also announced that its customer identification process has changed and “non-face-to-face” identification forms will be rejected, effective February 28.

In order to verify the identities of new applicants for Resimac Accelerate deals, customers must either be interviewed by an introducing broker face-to-face (providing original documentation from Resimac’s face-to-face customer identification form), or identification will need to be provided via Australian post or ZipID. 

Any customers that submit non-face-to-face identification forms to the lender moving forward will be required to verify their identification again, using one of the correct methods of approval.  

Customers in remote locations or other extenuating circumstances have been advised to contact their business development manager. 

The third change requires Resimac Accelerate loan applications to be accompanied by three months’ worth of personal bank statements that have been issued within the last 30 days. 

The changes follow a range of simplifications that the lender made to its specialist loan applications, including grouping multiple credit checks for single events to make applying for a mortgage easier.

Updated on 4 March 2019 to clarify that three construction loans have been removed from Resimac's product portfolio. 

[Related: Lender simplifies specialist loan applications]

 

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Ezekiel MacNevin

Ezekiel MacNevin

AUTHOR

Ezekiel is a journalist on the mortgages, property investment and wellness titles at Momentum Media. 

Before joining the team in 2019, he was a freelance journalist for Vice Australia, Pulse Radio and the Sydney-based travel publication Global Hobo, among others. 

Ezekiel studies a double Bachelor of Communications and International Studies at the University of Technology, Sydney.

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