Resimac slashes rates again

Mortgage Rates

The non-bank lender has slashed its two year fixed rate loan by 0.32% to 4.14% for customers borrowing up to 80% LVR. The new two-year rate is Resimac's second cut in the past two months, and sees the lender approach prices on offer from the major banks last year.

Resimac head of New Zealand Luke Jackson told TMM the move was made due to the Reserve Bank's Official Cash Rate cut last month. Since then, a host of lenders have cut two year ratesbelow 3.9%. Jackson is keen for Resimac to remain competitive for borrowers in the lower rate environment.

Jackson said Resimac was keen to attract "near-bank", near-prime customers who may have been turned away from the banks.

"We see ourselves as a front runner in that space, providing a competitive alternative for borrowers," he told TMM Online.

He said Resimac would continue to react to further OCR changes, like all lenders in the market.

"Economists are putting the chances of a further cut at about 50-50, and we will be looking at what we can do," he said.

Meanwhile, Reismac's prime three year fixed rate has been cut from 4.69% to 4.19%.

Jackson said Resimac was "here for new business", with plenty of firewpower to take on more customers.

"We have a sizeable credit team here in New Zealand and our turnaround times should be competitive," Jackson added.