A non-bank lender has unveiled the “largest overhaul” of its specialist lending product range since it entered the specialist lending market in 2007.
has announced it will be simplifying its suite of specialist lending products, as well as making a series of policy and pricing changes – in a commitment to make life easier for their network of brokers.
The new range offers three products, each with just one credit impairment level. Previously, the lender had three specialist lending products with multiple credit impairment levels. Thus, it has effectively reduced its number of specialist products from seven to three.
“We have basically flipped our product range on its head,” Resimac’s chief operating officer Allan Savins said.
“Rather than a broker having to decide between three different products and then work out the level of credit impairment, each of our new Specialist products essentially represent the applicable credit impairment level. After the product has been determined, all a broker needs to choose is the method of income verification (Full Doc or Alt Doc).”
Resimac’s three new Specialist products will be named Specialist Clear, Specialist Plus and Specialist Assist.
The changes also include a number of product and policy enhancements. The lender says policy improvements include increasing the amount of defaults that will be disregarded to $2,000 (up from $1,000) and introducing an interest only option on all specialist products for owner occupiers.
“We took this opportunity not only to simplify our product range, but enhance it at the same time. By increasing the dollar value of the defaults we disregard to $2,000, more borrowers will qualify for the entry level Specialist Clear product and the lower interest rate that comes with that product,” Savins said.
Savins also announced further interest rate cuts, reduced risk fees and broader LVR bands. He says these enhancements will reduce the number of potential interest rates and risk fees a broker will need to navigate through.
“This product and LVR rationalisation will see a reduction of up to 55bps across our products, delivering a total reduction of 80bps on some products since early February,” he said.
All changes will be effective immediately.