Fixed rate product offers rate relief
Resimac has introduced a new fixed rate solution catering to borrowers who fall outside standard bank lending criteria.
The non-bank lender’s near prime product, Specialist Clear, provides budgeting certainty amid rising interest rates, and is available to applicants with a loan-to-value ratio (LVR) of up to 80%.
Specialist borrowers are able to lock in a two-year fixed interest rate of 8.99% (full doc) or 9.49% (alt doc), Resimac said.
Resimac New Zealand general manager Luke Jackson (pictured above) said the non-bank lender recognised that specialist customers were “on the road to recovery”.
With interest rates continuing to rise, and fixed rate lending making up around 90% of total lending, these borrowers should have access to competitive fixed rates, he said.
“Few alternatives to banks offer the range of fixed rates that Resimac does,” Jackson said. As product lending specialists, we understand the needs of specialist borrowers better than most.”
Where an applicant has encountered a financial challenge and/or has been knocked back by mainstream lenders, subject to eligibility criteria, Specialist Clear gives mortgage advisers the opportunity to offer a fixed rate solution, he said.
“I encourage advisers to check whether customers who are suitable for an alternative-to-bank solution are getting the best deal,” Jackson said.
Drawing from local experience and expertise, Resimac understands the needs of local borrowers and develops products that solve real-world issues in the markets it serves, he said.
With the official cash rate sitting at 4.25% and the Reserve Bank of New Zealand set to meet on February 22 to determine the OCR, with bank economists forecasting a 50-basis point rise, it’s an opportune time to lock in a fixed rate, Jackson said.
