Resimac is to slash interest rates for self-employed borrowers to offer them help through the COVID-19 crisis.
The non-bank is following the trend set by the Big Four banks in cutting interest rates, with new rates dipping under 3% for certain conditions.
Those on their Prime Alt Doc owner-occupied principal and interest home loans can now access a rate of 2.99% regardless of their loan-to-value ratios, nearly a full percentage point lower than the previous rate of 3.87%. All risk fees for Prime Alt Doc have been waived as well.
With self-employed people hit particularly hard by the pandemic and related losses of earnings, Resimac said that they were hoping to help offer support for those who may want to invest or refinance at this time, especially outside of the purview usually catered to by the Big Four banks.
“There are many self-employed Australians who will need more support this year as they get back on their feet and transition back to normality after almost 12 months of disruption,” said Resimac’s General Manager Distribution, Daniel Carde.
“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. 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.”
“With the economy already showing signs of a strong recovery, we are also removing some of those temporary documentation requirements introduced in 2020, making 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.”
“This is a great opportunity for brokers to reach out to the eligible borrowers in their customer base to see if they can help lower their repayments and consolidate any other debts they may have accumulated by assisting them to refinance their current home loan.”
