Resimac cuts rates and lowers servicing test
Non-bank lender Resimac has cut floating and fixed mortgage rates as well as easing its servicing test for borrowers.
Tuesday, October 1st 2019, 1:41PM
Resimac has made the move after the Reserve Bank's Official Cash Rate cut of 50 basis points in August. Its prime floating rate is now at 4.5% up to 80% LVR, while its two year fixed rate is 3.89%, down 25 basis points.
The cuts come after rival Bluestone passed on cuts, mainly through its floating rate products, last month.
The non-bank has cut its serviceability rate for borrowers from 7% to 6% in light of the Reserve Bank's cuts in August.
Resimac head of New Zealand Luke Jackson said the moves would help the firm break into the prime market.
"We want to be a bigger force in the prime segment for advisers looking for competitive, pragmatic, lending options," Jackson said. "As well as the prime market, we also remain focused on offering high quality mortgage products that provide competitive, alternate home loan options to customers who may not meet traditional lending criteria from the big banks."
Resimac's new rates come into effect on Friday, the lender said.
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