Non-bank lender Resimac
has announced that it will no longer require LMI at LVRs to 85% on two of its most popular prime loans.
As of Friday, borrowers will be able to avoid LMI on both the Prime Standard and Premium loans to 85% LVR for properties in Category 1 locations. This offer is available to both owner occupiers and investors and will carry a maximum loan amount of $1,100,000.
Allan Savins, RESIMAC’s Chief Commercial Officer, said the lender is constantly looking for ways to deliver both transparency and efficiency to the loan application process.
“In removing the need to obtain LMI at these LVR’s we are effectively removing one layer in the assessment process,” he said.
This announcement is the latest in a series of enhancements the lender has made to its product suite in recent months.
“Earlier this year we removed the need for LMI on our Prime loans at 80% LVR and then leveraged off this initiative to deliver further policy improvements including increased loan amounts to $1,500,000. We also simplified our Specialist lending product range, reducing the number of products from seven down to just three,” said Savins.
“By offering both Prime and Specialist lending solutions Resimac
is able to garner more comprehensive data on borrower behaviour and related portfolio performance. It is this in depth knowledge that gives us the confidence to deliver initiatives such 85% no-LMI Prime loans.”
Applications under the 85% no-LMI policy will be assessed using Resimac’s standard Prime lending criteria. Interest rates will start at 4.54% with a 1.00% risk fee applicable for LVR’s between 80% and 85% when LMI is not taken out.