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RESIMAC makes important changes to rates and fees (+ VIDEO)

RESIMAC says it will continue lending up to 80% but it is making some changes to its products and pricing to help manage the mix of owner-occupied lending and property investment loans.

Friday, August 5th 2016, 12:08PM

RESIMAC general manager Adrienne Church says that investment lending up to 80% LVR is still available under the company's current product range.  "However, it is imperative that we maintain a balanced portfolio mix between owner occupied and investment loans in order to maintain our competitive product and pricing position."

She says that since the Reserve Bank had demanded banks limit property investment loans to a maximum 60% LVR RESIMAC's has seen an "imbalance between owner-occupied and investment loans being received." As a non-bank lender RESIMAC isn't subjected to the RBNZ restrictions placed on banks.

To fix this imbalance the company is making the following changes, 

It has reduced its prime fixed rates with its one-year rate falling to 4.94% and four and five year rates are down to 5.03%. (See full set of changes here)

However, prime investment loan will have another 40 basis points added to them.

"For all new prime investment loans (with LVRs between 60-80%), interest rates on both variable and fixed rate loans will increase by 0.40%."

Church says An investment loan is classified as any loan that contains an investment use security, irrespective of the loan purpose.

"As a sign of our commitment to both our business partners and our customers, RESIMAC will not be increasing the interest rate on any existing investment loans at this time. Additionally, there will be no change to the new business interest rates for prime owner occupied loans or our complete range of Specialist loans.

RESIMAC is also changing its processing application fee to try and improve loan conversion rates. The existing $475 fee will now be mandatory on all new loan applications. For loan applications that proceed to settlement, this $475 fee will be reimbursed or used to cover the settlement fee.

For any application where a property is yet to be located, or any application classified as a pre-approval, RESIMAC will no longer be undertaking a formal assessment of these loans. Applications of this nature can be submitted through our online portal RESiQ where a system generated conditional approval will be provided based on the information submitted.

RESIMAC has updated its servicing calculator, and has introduced a minimum servicing rate of 7%, with interest rates continuing to fall as a responsible Lender RESIMAC believe loans should be serviced at a more normalised rate (i.e. the 7%).

Tags: RESIMAC

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Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.05 3.95 4.49
ANZ Special - 3.55 3.45 3.99
ASB Bank 5.20 ▼3.89 ▲4.05 4.39
ASB Bank Special - ▼3.39 ▲3.55 3.89
BNZ - Classic - 3.55 3.45 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
HSBC Premier 5.24 3.35 3.35 3.35
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 4.04 3.95 4.39
Kiwibank 5.80 ▼4.14 ▲4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - ▼3.39 ▲3.55 3.89
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.25 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Lender Flt 1yr 2yr 3yr
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.86 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.55 3.39 3.89
Sovereign 5.30 4.15 4.29 4.55
Sovereign Special - 3.65 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
TSB Bank 6.09 4.35 4.25 4.69
Lender Flt 1yr 2yr 3yr
TSB Special 5.29 3.55 3.45 3.89
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.55 3.45 3.99
Median 5.34 4.02 4.09 4.39

Last updated: 21 November 2019 9:39am

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