Resimac has cut its floating and fixed interest rates, and has also lowered its prime home loan servicing testing rate from 7% to 6%.
Its prime floating rate is now 4.50% with 80% LVR, and 4.90% for 80% - 90% LVR.
Its best offer is currently its 2-year fixed term standard rate of 3.89% - lower than the best main bank rate currently on offer for the same term, not including ‘special’ rates. Resimac is also offering the same rates across the board for standard investment home loans.
Resimac New Zealand head Luke Jackson says the rate cuts were driven by the desire to make more funding options available to mortgage advisers and their clients in the prime residential lending market, and to pass on as much as possible of the Reserve Bank of New Zealand’s recent OCR cut of 0.50%.
“Resimac is growing its presence in the New Zealand mortgage market with market leading rates and great service,” Jackson said. “We want to be a bigger force in the prime segment for advisers looking for competitive, pragmatic, lending options.
“As well as the prime market, we also remain focused on offering high quality mortgage products that provide competitive, alternate home loan options to customers who may not meet traditional lending criteria from the big banks.”
Resimac is competing in the alternative lending market as a near-bank solution offering lending for the full term of a mortgage, rather than an ‘interim’ solution until a borrower can return to the main banks.
The new home loan rates are effective for new applications from Friday 4 October 2019.