Resimac has announced changes to its rates and policy to maintain a balanced portfolio between its owner occupied and investment loans, but it will maintain investment lending up to 80% LVR under its current product range.
general manager mortgages NZ, Adrienne Church
told NZ Adviser
, “While we’re not directly impacted by the RBNZ
’s changes, we do need to ensure we have a balanced portfolio.
“We will continue to support our business partners and borrowers for as long as we can but to do this we need them to work with us to maintain this balance - if we’re swamped with only investment deals we will have to relook at things.”
In a release, Resimac
stated the following prices and policy changes will be effective today, 5th August, with rate changes detailed in the table below:
• Reductions across all Prime Fixed Rates.
• All new Prime investment loans received from today (with LVR’s between 60-80%), interest rates on both variable and fixed rate loans will increase by 0.40%.
• Interest rates on any existing pipeline loan not yet Conditionally Approved by close of business e.g. 5pm, Thursday 4th August 2016 will also increase by 0.40%.
• No increase on the interest rate on any existing investment loans at this time and no change to the new business interest rates for Prime owner occupied loans or our complete range of Specialist loans.
• The existing $475 Processing Application Fee will now be mandatory on all new loan applications. For loan applications that proceed to settlement, this $475 fee will be reimbursed or cover the RESIMAC Settlement Fee.
• No longer undertaking a formal assessment of loans for any application where a property is yet to be located, or any application classified as a pre-approval
• Introduction of a minimum servicing rate of 7%, with interest rates continuing to fall as a Responsible Lender RESIMAC believe loans should be serviced at a more normalised rate i.e. the 7%.
Source: Resimac Home Loans Update