It gives ability to train, accredit employees on providing advice
Non-bank lender Resimac has announced it is the first banking alternative to gain a Class 3 Financial Advice Provider licence.
The licence gives Resimac the ability to train and accredit employees so they can advise consumers on company products.
On October 4, the Financial Markets Authority (FMA) revealed 86% of financial advice providers had now embarked on – or completed – the full licence application process, which shows the sector’s commitment to the new licensing regime which came into effect in March 2021.
Read next: FMA – 86% of financial advice providers now on full licensing path
Resimac New Zealand general manager Luke Jackson (pictured above) said while the broker channel would remain Resimac’s primary mode of distribution, consumers who preferred to deal directly would now have the benefit of greater in-house support.
“Consumers are increasingly recognising Resimac as an innovative lender and getting in touch with us to see how we can meet their needs,” Jackson said.
“More staff will be able to give mortgage advice and satisfy these requests which improves brand reputation for brokers too. As the market has become more challenging, we know there are an increasing number of brokers who are looking at alternatives to banks for their clients.”
Jackson said brokers often could find it difficult introducing these alternatives, particularly when clients have not heard of the provider before.
“As we strengthen our service across two distribution channels, brokers recommending Resimac will find more customers trusting our name and reputation,” he said.
“We continue to set ourselves apart from the competition with innovative offers.”
Read more: Resimac launches 20-year interest only investor loan
On September 30, the non-bank lender announced a new property investor offering, which Resimac describes as a ‘first’ for New Zealand property investors.
The Cashflow 20 Investor Loan is a 20-year interest-only home loan which is now available for eligible borrowers, providing them the opportunity to lock in up to 20 years of interest-only payment terms for their residential property investments. The loan was designed to help professional investors maximise the return on their investments with mortgages taken out in 2022 by benefiting from interest-only repayments until 2042.
“Savvy property investors had a long-term lens when assessing property opportunities, but there was a significant gap in the market for loan products that accommodated this future focus,” he said. “Our new Cashflow 20 Investor Loan has been purpose-built to help investors seize opportunities now and build an investment portfolio in a cashflow-effective manner.”
The interest-only repayments period is available for a maximum 50% LVR and principal and interest repayments apply to additional lending.
