After unveiling a simplified range of specialist alt doc products earlier this year, non-bank lender Resmiac has today announced key policy changes to its prime alt doc product, aimed at giving self-employed borrowers even more choice.
Amongst the key policy changes announced is an increase in maximum loan amount to $1,500,000 for those borrowers seeking to borrow up to 75% of the security value, the ability to access cash out for any worthwhile purpose and the removal of automated credit decisioning.
Additionally, the non-bank says borrowers will now have more flexibility when it comes to verifying their income with the option of either an accountant’s letter, six months Business Activity Statements or three months business bank statements to support their declared income.
“We believe the self-employed sector has been largely underserviced since the introduction of the National Credit Code back in 2010,” Allan Savins, Resimac
’s chief commercial officer said.
“The Regulatory Guides don’t prohibit brokers from offering alternative documentation solutions to self-employed borrowers, and whilst Resimac
certainly has a comprehensive range of full documentation solutions we also haven’t forgotten those self-employed borrowers who may not have their current two years financial statements prepared.”
According to Savins, the self-employed market represents a significant opportunity for brokers considering there are over two million self-employed people in Australia operating in a variety of industries.
“Not all of these borrowers will have up to date financials and many may be going through a significant growth phase in their business where the most recent financials available are not a true reflection of their current trading conditions. An alt doc loan is the perfect solution for these borrowers,” Savins said.
prime alt doc is available to self-employed borrowers who have been in business for 24 months and seek to borrow up to 80% of the security value.