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Resimac cuts variable interest rates

The non-bank lender has reduced variable interest rates on its Prime Alt Doc product in a bid to assist self-employed borrowers in their recovery post-COVID-19.

Resimac has cut variable interest rates on the product – which has been designed for self-employed borrowers who require alternative methods of income verification – by up to 50 bps.

Variable interest rates for owner-occupiers with a loan-to-value ratio (LVR) of less than 70 per cent will start from 3.47 per cent per annum (comparison rate 3.51 per cent per annum), while interest rates for those with an LVR of between 70 per cent and 80 per cent would start from 3.87 per cent per annum (comparison rate 3.91 per cent).

The reduced rate is effective for new applications received for the product from today (7 December). It is available for owner-occupier and investment loans, and for both principal and interest, and interest-only repayments.

Commenting on the rate changes, general manager of distribution Daniel Carde said it was currently an “opportune” time for brokers to be driving new business with self-employed borrowers.

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“The self-employed segment has been doing it tough for most of the year with the COVID-induced lockdowns and restrictions,” Mr Carde said.

But with almost every state and territory opening up its borders and easing restrictions, they are quickly recovering, putting them in a strong position to access lending products. Small businesses are the backbone of the Australian economy, and we want to ensure they’re supported during this critical phase with access to competitive loans that are tailored to meet their unique needs.

“As our economy starts to bounce back, self-employed borrowers will need guidance and advice from their trusted brokers more than ever to navigate the changed market. It’s a great time for brokers to reach out to clients and see how they can help them achieve their financial goals into the new year.”

The Prime Alt Doc product is available to self-employed borrowers who have been operating the same business for a minimum of 24 months, with a maximum loan amount of $1.5 million at 75 per cent LVR, and $1 million at 80 per cent LVR, including unlimited cash out.

Features of the product include support for refinance and debt consolidation, choice of income verification options, and 100 per cent offset.

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The cut in interest rates from Resimac has followed similar moves by other lenders, who slashed their rates after the Reserve Bank cut the official cash rate to a new record low of 0.10 per cent in November.

Lenders such as the major banks, Teachers Mutual Bank Ltd, ME Bank, Suncorp, Citi, CUA, P&N Bank, ING, Bendigo Bank, MyState Bank, AMP Bank and bcu all recently cut their rates.

[Related: Self-employed shut out from home loan deals: Pepper]

Resimac cuts variable interest rates
Resimac cuts variable interest rates
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Malavika Santhebennur

Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.

Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.

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