Resimac slashes mortgage rates

Resimac has repriced its Prime Flex product range, targeting at PAYG and self-employed applicants looking to purchase, refinance, consolidate debt, or cash out.

The non-bank has temporarily reduced rates by up to 30 bps to as low as 2.29 per cent (2.66 per cent comparison rate).

The rates changes apply to both owner-occupier and investors with a loan-to-value (LVR) ratio of up to 85 per cent, and are effective for applications received from Monday, 19 October 2020.

According to Resimac’s general manager of third-party distribution, Daniel Carde, the reductions are aimed at borrowers seeking the “ultra-low” pricing of a fixed-rate loan and the flexibility of a variable rate product.

“The latest industry figures show strong activity in the home loans space. Borrowers are keen to take advantage of low interest rates and they’re hungry for great home loan deals,” he said.

“Our latest promotion combines a highly competitive interest rate with features we know our customers care about, such as the ability to make extra repayments, and redraw and offset facilities.

“The record-low interest rate of 2.29 per cent will enable customers to save money on what’s likely to be their household’s biggest financial commitment.”

These latest reductions follow cuts of up to 23 bps on Resimac’s Prime & Prime Flex loans with an LVR of up to 70 per cent.

Resimac’s rate reductions also come amid anticipation of a further cut to the cash rate from the Reserve Bank of Australia (RBA).

Both Westpac chief economist Bill Evans and NAB Group Economics have forecast a 10 bps cut to the cash rate next month, aimed at supplementing stimulus announced in the federal budget.

[Related: RBA paves way for November cut ]