Non-bank rolls out support to self-employed borrowers

By Gerv Tacadena

Non-bank lender Resimac has rolled out some changes to support self-employed borrowers, allowing them to invest, refinance, and consolidate their debts.

The bank has reduced the rate of its Prime Alt Doc mortgage to 2.99% across all loan-to-value ratios. It also waived the risk fee for all Prime Alt Doc products and rolled back some of the temporary loan documentation requirements introduced in 2020.

Daniel Carde, general manager for distribution at Resimac, said the move is expected to provide self-employed borrowers access to credit.

"Refinance activity was particularly strong in 2020. However, many self-employed borrowers were effectively shut out of the market due to the economic uncertainty caused by the pandemic," he said. "We’re looking to change that in 2021 by reducing our interest rates and removing almost all the entry costs on our range of Prime Alt Doc loans."

Carde said the bank is also removing the temporary documentation requirements introduced in 2020 to make the process of applying for a loan simpler.

“This is another example of Resimac pioneering in the non-bank space. Last year we kept up our lending program with no material changes to our credit policies, and now we’re continuing to meet the evolving needs of Australians, particularly the self-employed," he said.

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