Powered by MOMENTUM MEDIA
the adviser logo
Lender

Resimac announces reduction in interest rate

by Sam Nichols4 minute read

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.). 

Advertisement
Advertisement

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]

rate cut

Sam Nichols

Sam Nichols

AUTHOR

Sam Nichols is a journalist at The Adviser and Mortgage Business. His reporting has featured in a range of outlets including ABC News, SBS' The Feed, and VICE.

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

PhilipLowe mb

RBA attempts to curb runaway inflation

On Tuesday (5 July) the Reserve Bank of Australia (RBA) announced at its monetary policy meeting it will increase the...

READ MORE
flood qld suburbs ta

Home loan support offered to NSW flood victims

Widespread persistent heavy rain over large swathes of NSW over the weekend and into Monday (4 July) has caused major...

READ MORE
Dr Jane Rennie CPA

Accountants to decline ‘capacity to repay’ requests

The leaders of CPA Australia, the Institute of Public Accountants (IPA), and the Chartered Accountants Australia and...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more