Jeff Royle and Resimac team up for investor loans

iLender's Jeff Royle has teamed up with Resimac to launch a new loan product for investors impacted by strict bank lending criteria.

iLender has rolled out a loan product for experienced investors looking to add a property, but facing onerous servicing criteria and testing from mainstream lenders.

The product, available through Royle's adviser business, is for investors looking to buy another asset, release equity, or borrow more against existing assets for improvements.

In the current market, investors are "falling foul" of bank tests, Royle said: "They're testing portfolios at 6% and 25 years on P&I, then saying they're not interested."

ASB's introduction of debt to income ratios, and strict criteria among the other major banks, has left investors seeking other options.

With a funding line of about $20 million from Resimac, Royle believes he can offer a solution to investors.

The new product will do live deals only, and no pre-approvals. LVRs will be capped at 70%, with a sweet spot loan size of $500,000 to $2 million on a 20 year term.

Investors can have up to 50% on interest-only, 4.09% fixed for two years, or 4.19% on floating.

A fee of 1.5% can be added to the loan to cover adviser and lender costs, with no early break fees if clients are on floating rates.

Royle said the product would test customers "on the reality of their overall position, not stress tested as with other products. 

"It's a simple product designed to help experienced advisers add to their portfolio," Royle added.

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