Resimac has revealed new changes to its standard prime home loan product this week to provide more flexibility to both borrowers and brokers.
The non-bank lender is slashing the mortgage insurance requirement on standard prime full doc loans to 80% LVR and SMSF loans to 70% LVR, in the hope of having more room for enhancements.
“The removal of mortgage insurance at these LVR levels has allowed us the flexibility to amend a large number of policies. We are always striving to create products that give us a real point of difference in the market place. These changes have further improved our competitive position when it comes to providing flexible lending solutions,” chief commercial officer Allan Savins said.
The change means Resimac’s entire standard prime full doc loans to 80% LVR will no longer require credit scoring and have no limit on consolidation.
Resimac also loosened its belt by increasing the maximum loan amounts to $1.5m and accepting late payments up to a week on refinances and allowing defaults of up to $500 for a maximum of two listings.
Moreover, the lender lowered its minimum floor size from 50sqm under 80% LVR to 40sqm, just as the housing market sees more micro-condos emerging.
Savins believes these policy enhancements will enable more borrowers – including self-employed individuals – to qualify for a prime loan without resorting to a specialist product solution.
Resimac will start accepting up to a 50% increase over prior year’s income when assessing serviceability. The non-bank lender may even consider using the most recent year’s income when supported by six months BAS statements for strong borrowers.