RESIMAC adds processing fee to loan applications
Specialist lender RESIMAC has taken a bold step and decided to charge a loan processing fee when deals are lodged.
Friday, September 25th 2015, 11:40AM
Adrienne Church says it is RESIMAC’s response to the issue of slow turn around times which all lenders are struggling with.
She says part of the problem is that advisers are taking a “shotgun” approach and sending the same deals to multiple lenders.
This in turn leads to wasted resources and low conversion rates. She says RESIMAC’s conversion rates in New Zealand are around 15-20% while in Australia they run at 60%.
TMM Online understands the big banks also have similar numbers when they compare New Zealand to Australia.
“Unfortunately this is something we’ve been forced to do as our conversion rates are just too low,” Church says.
RESIMAC will charge $475 to lodge an application, however that can be avoided if the deal is lodged online and will be waived for its platinum brokers. This group of people have conversion rates of more than 50% and also get other benefits from RESIMAC.
Church says if a loan gets settled then the fee will be refunded at settlement.
“We are here to be a niche lender, not to do the cheapest rates which we just can’t compete in.”
RESIMAC’s current niches are:
- Prime Products; 90% LVR Prime Standard (for the Platinum Advisers), 80% Investment loans or 70% Prime Low Doc
- Specialist Products; 80% LVR Specialist Standard and Specialist Low Doc
This fee will not be applicable if the deal is submitted through RESIMAC’s online channels Quick Quote or RESiQ and it will be refundable on settlement.
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