Non bank lender RESIMAC has ended its interest rate launch specials, effectively raising rates.
At the same time, it has expanded its credit policies, including the dropping of the requirement for lenders mortgage insurance (LMI) for regular loans up to 90% LVR.
The new interest rates see a small rise of 4 bps for Variable rates to 5.59%, a 40 bps rise for the one year fixed rate to 5.35%, and a 15 bps raise for the 3 year fixed rate to 5.90%.
For the four year tern, rates rise 10 bps to 6.20% and for the five year term they rise to 6.50% by 20 bps.
The new rates were announced in an emailed statement and are similar although fractionally higher than bank mortgage rates.
RESIMAC's focus is on building unique offerings to borrowers who can't meet bank home loan standards because of their self-employed or similar status. Their Lo-Doc products are designed for these borrowers.
It says it has seen their "acceptable locations expand dramatically to ensure they continue to be the genuine alternative to New Zealand consumers."
The new "expanded credit policies" announced include:
· Removal of LMI up to 90% LVR for Full Doc loans;
· A new serviceability calculator enabling greater servicing capacity;
· Minor credit impairments can now be considered on a case by case basis up to 90% LVR for Full Doc loans;
· Significant reduction in upfront Full Doc Risk Fees which can be capitalised above 90% LVR
RESIMAC home loans can only be accessed via a mortgage broker.
Their new interest rates are as follows:
| Variable | 1 yr | 2 yrs | 3 yrs | 4 yrs | 5 yrs | |
| % | % | % | % | % | % | |
| Standard: | ||||||
| <80% LVR | 5.59 | 5.35 | 5.55 | 5.90 | 6.20 | 6.50 |
| >80% LVR | 5.79 | 5.55 | 5.75 | 6.10 | 6.40 | 6.70 |
| Lo-Doc: | ||||||
| <70% LVR | 6.59 | 6.35 | 6.55 | 6.90 | 7.20 | 7.50 |
See all advertised home loan rates here.
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