Non-bank lender Resimac has lowered its variable interest rates for new borrowers, and will also be offering existing borrowers the chance to defer their mortgage payments for up to six months.
Resimac’s variable rates for new business now start at 3.49% per annum, with two year fixed rates starting from 3.39% per annum.
The new two-year rate brings Resimac into stiff competition with the mainstream banks, with only ANZ and BNZ offering better two-year terms.
Resimac’s head of New Zealand Luke Jackson says the lender is “committed to supporting New Zealand mortgage advisers in the current challenging environment” by offering them “highly competitive prime interest rates and maintaining its market-leading turnaround times.”
“We know that despite the coronavirus lockdown, there’s still a market of borrowers looking to transact,” Jackson said.
“Now, more than ever, these borrowers need the support of professional mortgage advice and a reliable source of funding. Resimac is committed to enabling the mortgage adviser community to meet these needs and produce the best possible client outcomes.”
“We also understand that the financial position of many borrowers is likely to have changed,” he added. “Mortgage advisers need a supportive lender which can provide reliable funding solutions for both bankable and non-bankable clients.”
Jackson said Resimac is also committed to helping borrowers in tough financial situations as a result of the outbreak and lockdown, and will be offering the same mortgage holiday as offered by the mainstream banks.
It is the second non-bank to offer the mortgage holiday, following Avanti Finance’s announcement yesterday.
Jackson urged all borrowers considering taking the holiday to talk through their best options with their adviser, and to consider other options wherever possible.
“The standard six months of deferred payments may not be the best solution for the borrower – many have found that switching to interest-only for a period, or opting for a shorter period of payment deferment, may better suit their situation and needs,” Jackson said.
“Resimac has also had a significant increase in the number of hardship applications in recent weeks,” he concluded.
“Because of our dedicated local infrastructure and our locally-based assessors, we have been able to quickly assess and action these applications, providing certainty in this difficult environment for both the borrower and the mortgage adviser.”