It raises LVR to 90% on Prime Alt Doc loans
Non-bank lender Resimac has introduced new loan-to-value ratio (LVR) bands of up to 90% for its Prime Alt Doc product – an increase from the previous maximum of 80% LVR, which was exclusive to self-employed customers.
Chris Paterson (pictured), general manager of distribution at Resimac, noted that while self-employed individuals constitute about 15% of the total workforce, they often encounter difficulties in having their income fairly assessed by major lenders.
“We’re focused on offering better alternatives, and the changes we’ve made have really started to resonate, with self-employed borrowers accounting for about 60% of our settlements since the start of the financial year,” Paterson said.
“Higher LVR bands on our Prime Alt Doc product make sense in the current economic climate. As well as lowering the deposit required for purchasing property, it enables self-employed borrowers with as little as 10% equity to refinance their home loan to Resimac and access features like unlimited cashout and debt consolidation.”
Read more: Alt-doc lending breaks down finance barriers
The LVR adjustment follows several other recent enhancements to the Prime Alt Doc product, including a rise in the maximum loan amount to £2.5 million and the elimination of a cashout limit.
“This is a great opportunity for brokers to drive more deal flow,” Paterson said. “Self-employed clients won’t necessarily know they can use mortgage-based finance to borrow money for their business, with lower interest rates than what they can typically access through traditional business loans.
“Self-employed borrowers refinancing with Resimac can access up to $500,000 to fund their business needs, which could be things like purchasing equipment, leasing an office space, or buying inventory. This could provide a much-needed cash injection for businesses to help them ride out the current economic cycle.”
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