Non-bank Resimac is giving brokers the opportunity to offer eligible residential investor clients owner-occupied pricing on investment home loans through its latest bundle offer.
For customers to benefit from Resimac’s new offer, all they need to do is bundle both their owner-occupied and investment loans together in the one transaction.
Owner-occupied interest rates will apply across the entire loan regardless of how the loan is split with the offer available to both purchases and refinances.
The savings that customers can expect depend on their previous rate and the offer is open to applications lodged up to October 31 and has been timed to help brokers in the lead-up to spring sales.
Resimac general manager distribution Chris Paterson (pictured above) said brokers could offer a compelling proposition to clients with both owner-occupied and investment properties.
“Customers who bundle their loans with Resimac can gain a more attractive rate as well as simplify their portfolio by dealing with the same lender,” Paterson said.
“We know many residential property investors fear becoming over-extended on their property portfolios, so any opportunities that brokers can offer to help improve their cash flow or return on investment are likely to be well-received. With the refinance market as hot as it is right now, we're giving brokers access to a product that fills a real customer need.”
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The launch of Resimac’s new bundle offer comes off the back of new research commissioned by the Resimac Group that found 21% of Australian mortgage holders were likely to refinance in the next 12 months.
A more competitive interest rate was the most popular reason for switching, followed by attractive loan options and features (such as a free offset account).
“Amongst that quarter, 72% are likely to use a broker for their next mortgage or refinance, with 29% of that at cohort identifying as ‘very likely’,” he said.
“Resimac’s bundle offer is available for the prime full-doc and prime alt-doc products. A maximum LVR ratio of 80% applies and eligible customers receive owner-occupied pricing on all loan portions. Interest-only rates will continue to apply to portions under interest-only loans.”
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Villa Finance Group mortgage broker Sarah Helm said Resimac’s bundle offer was a great option for her clients for a couple of reasons.
“If they want to save on interest at the moment, it's a good option to do that,” Helm said.
“The other reason is it allows access for those who want to invest in property. For those who want to get into that investment market, this offer is not going to impact their borrowing capacity as much as it would with another lender at a higher rate. On a $500,000 loan, they could potentially save a couple of thousand dollars a year.”