Resimac slashes prime rates

Non-bank Resimac has slashed prime rates to new lows as it pushes to take business from traditional lenders.

The lender has cut interest rates for prime variable and one to five-year fixed home loans as it continues its aggressive push for market share.

As of this week, Resimac’s two-year fixed rate mortgages will start from 2.99%, a reduction of 40 basis points. The rate is cheaper than SBS and The Co-operative's standard interest rate.

Three-year mortgages are available from 3.35%, a fall of 34 basis points. Variable interest rate loans will start from 3.39%, a fall of 10 basis points.

The reduced prime products are available for owner-occupiers and investment properties up to 70% LVR. Resimac continues to lend up to 80% at existing rates.

Luke Jackson, head of New Zealand at Resimac, said the new rates underlined the non-bank's support for advisers and their clients.

"Resimac has received strong demand for prudent lending throughout the uncertainty of this year," Jackson said. "At the same time, we have also seen a significant number of customers come out of hardship. We dropped our prime rates in March during lockdown, but more importantly we settled loans right throughout it. We then dropped our specialist rates in June.

"While we appreciate there is still more uncertainty ahead, this latest rate cut shows how Resimac continues to work to be a strong and reliable lending partner for advisers and to lead the market in dynamic offerings that improve lending options for borrowers," Jackson added.

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