Resimac mixes it up on credit

Ian Rogers

Specialist lending will soon be half the market, and prime loans uncommon.

So shadow banking will increasingly be banking (as it once was) and Australian society may be the better for it.

Access to credit is fundamental to commerce and backing small business and the self-employed, and is the work of the likes of Resimac.

ASX-listed Resimac is waiving the $330 fee – the only upfront fee – charged for a valuation.

This was a high margin fee to begin with and Resimac is a high margin operator when it looks sharp, with interest rates on specialist lending products in the order of four per cent at a time when the best-priced prime mortgage products priced at less than two per cent.

Resimac says its “competitive suite of specialist lending product are designed to suit the needs of borrowers who fall outside traditional lending guidelines.”

The offer to waive the up-front fee for the valuation is effective for new Resimac Specialist Full Doc and Specialist Alt Doc applications received from Tuesday 15 September, and available for owner-occupier and investment loans, and both principal & interest and interest-only repayments.

This promotion follows Resimac’s rate reduction earlier this month of up to 22 basis points on its Resimac Prime and Prime Flex loans, which are currently available from 2.59 per cent (comparison rate 2.95 per cent).