businessOwned by: ASX Listed
monetization_onFunded by: Wholesale capital markets
securityLMI Provider: Genworth, QBE LMI and Self-Insured
account_balanceLender type: Non-Bank, Specialist Lender
Resimac was once an aggressive wholesale funder that helped the non-banks to compete with the major banks. These days it’s far less competitive and has a few niche products which are available through one of its non-bank partners.
Since the GFC they have evolved as a business through mergers and investments in other lenders. Resimac merged with Homeloans Ltd which was one of their largest mortgage managers and later rebranded the Homeloans Ltd business to be Resimac.
Resimac is known for no-frills home loans, unique lending policies and occassionally exceptional pricing for specific types of customers.
How do Resimac’s home loans compare?
- Sharp interest rates for some customer types
- Lending 95% with no genuine savings
- Property investors can borrow up to 95% of the property value
- Solutions for borrowers with a bad credit history
- They offer 85% home loans with no LMI
- Low doc loans with a small deposit available
- Interest rate is based on security and not the purpose of the loan
- No credit scoring
- In house LMI DUA
- Accepts Centrelink benefits
- Company and trust loans accepted
- Can go up to 90% LVR on specialist alt doc loan.
- Relatively strict lending policy
- Interest rates and fees are not always competitive
- Their LMI can be expensive
- Their systems are out-dated which can means delays with your application
- No branch access
- Their low rate loans use tough credit scoring and you may get declined for no apparent reason
- Slow to assess your application during busy periods
- Can’t do non-resident mortgages
What home loans do they offer?
They offer home loan products in their prime and specialist categories.
Resimac Prime: Low rates for PAYG and self-employed applicants who want to purchase, refinance, consolidate debt or cash out/
Resimac Prime Alt Doc: Self-employed applicants or other applicants who require alternative methods to verify their income.
Resimac Prime 85% No LMI: For PAYG and self-employed applicants who want to borrow up to 85% without paying LMI.It is not available for construction or vacant land purchase.
Resimac Prime Non-Gen: For borrowers who can’t save up the 5% gen savings or when they have to use either a gift or FHOG. You must have a clear credit history.
Resimac Specialist: Available to borrowers who have impaired credit, a higher loan amount or those who have reached their exposure with mortgage insurers. There is no limit on the number of debts that can be consolidated.
Resimac Specialist Alt Doc: Self-employed borrowers who have impaired credit, require a higher loan amount or reached exposure with mortgage insurers. Unlimited cash out available for a payout of ATO debts, working capital and purchase of business equipment.
Is Resimac in or out?
Resimac seemed to have gone into hibernation after the GFC. They had home loans available but they seemed to be trying to decline everyone who applied with them and they rarely had competitive interest rates.
Now we’re seeing that Resimac is back in action. They’ve seen the success of their competitors like Pepper and they’re sharpening their interest rates to compete. They’ve acquired RHG which is the old loan book of customers from Rams before the brand was sold to Westpac. They’ve also purchased State Custodians which is a major non-bank lender based on the Central Coast of NSW and Homeloans Ltd.
Ultimately their credit assessment is still really conservative and although they do have some good policy niches it can be tough for customers to jump through the hoops to actually get an approval.
Resimac client story
To buy a home using a gift as a deposit.
Since completing his university degree, Samuel had been in the workforce for 2 years and wanted to move out of his parents’ house. The problem was that he didn’t have a deposit.
Although his parents were in a position to offer him a gift to help him get into the property market, he didn’t have any savings of his own so his bank wouldn’t consider his application.
At that time Resimac was approving loans for 95% of the purchase price (LVR) without the need for a savings history.
In order to get approved, he needed to show that he had a stable career and was in a position to make mortgage repayments despite not having any savings of his own. In this case, that meant providing group certificates for the last two years.
Resimac approved the loan and Samuel was able to move into a unit of his own in the city.
Compare Resimac to other lenders
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