The non-bank lender has confirmed it will lower the interest rates for its Prime and Prime Flex packages.
As of last Friday (24 September), non-bank lender Resimac Group (Resimac) lowered the interest rates of its Prime and Prime Flex packages by 15 basis points.
The reduction applies to owner-occupied and investment, principal and interest and interest-only loans with loan-to-value ratios (LVRs) of up to 80 per cent.
Under the move, Prime Flex loans with up to 70 per cent LVR have seen rates decrease from 2.29 per cent per annum to 2.14 per cent (including a $299 annual fee). The comparison rate is 2.51 per cent per annum (p.a.).
Those between 70 and 80 per cent LVR will drop from 2.39 per cent per annum to 2.24 per cent (comparison rate 2.61 per cent p.a.).
Owner-occupier and principal and interest variable Prime loans will see a similar drop.
Loans of up to 70 per cent LVR have seen rates drop from 2.59 per cent p.a. to 2.44 per cent, and those between 70 and 80 per cent LVR have decreased from 2.69 per cent p.a. to 2.54 per cent (comparison rates: 2.48 per cent per annum and 2.58 per cent, respectively).
Both the Prime and Prime Flex loans exclude:
- Construction or structural home improvements
- Those purchasing vacant residential land
- Payment of taxation debt
- The refinancing of private or solicitor loans
Resimac has stated that the loans are available for business purposes of up to $500,000 and a maximum LVR of 80 per cent, and that New Zealand citizens and residents can apply.
Resimac's general manager distribution Daniel Carde said that the changes addressed two of the key points of relevance for customers.
"Low rates are an obvious drawcard – this is often one of the first things customers are interested in. Reducing the rates on our Prime Full Doc products up to 80 per cent LVR by 15 basis points brings us head-to-head with the most competitive products in the market."
Mr Carde added that Resimac has also implemented a "raft of technology and process improvements to whittle our conditional approval times down to one to two days for fully packaged Prime applications".
The non-bank simultaneously announced that, as of 24 September, it had increased the maximum loan value amounts across LVR brands for Prime Alt Doc.
These increases have seen limits for up to 70 per cent LVR increase from $1.5 million to $2 million.
LVRs between 70 and 80 per cent have risen from $1 million to $1.5 million.
[Related: ING drops variable rates by up to 60 bps]