Non-bank lender Resimac has decided to ease its credit criteria for investors following the removal of loan-to-value ratio (LVR) restrictions.
Resimac confirmed that it would allow investors to borrow up to 80% LVR to help customers during the COVID-19 crisis.
“The decision reflects the easing of speed limits. We've always been comfortable lending at 80% LVR to investors but were constrained, and now we're not, and are opening up for prime customers. We're happy to look at more in that space,” said Resimac NZ head Luke Jackson, as reported by Good Returns.
Meanwhile, Resimac's servicing test rate remains at 6% as it continues to build market share in the country's prime investor market. It also cut its variable interest rates for new borrowers to 3.49%, with two-year fixed rates starting from 3.39% per annum.
“We like to be seen as an alternative lender now, not someone you see when the banks say no, but the first port of call,” Jackson said.
Read more: Resimac lowers mortgage rates, offers payment deferrals
Resimac also revealed that it continues to receive a myriad of applications for refinancing and from customers with rejected pre-approvals.
“This is happening against the longer-term backdrop of non-bank lenders taking market share away from banks. Non-banks are now providing interest rates that match bank rates. For example, Resimac recently launched a 3.49%pa variable mortgage rate and a two-year fixed rate of 3.39%pa,” Jackson said.
“I expect in the coming months the non-bank share of the mortgage market will continue to grow as more advisers and borrowers recognise the attractiveness of non-bank lending solutions.”