The non-bank lender will stop accepting new home loan applications from 1 July, but will continue servicing existing clients and those with applications in the pipeline.
Resimac chief executive Scott McWilliam says after a comprehensive review of the New Zealand mortgage market the “competitive environment” will continue to be restrictive for non-banks “for the foreseeable future”.
Resimac New Zealand has provided customers alternative lending products since 2012. Its parent company, Resimac Group, has been in operation since 1985.
Resimac’s top adviser since it started in New Zealand Jeff Royle of iLender says he is sad, but the writing has been on the wall for some time. “I am really disappointed they just did a press release yesterday without letting New Zealand’s advisers and aggregators know first.”
Kiwi Advice Network was also caught blindsided and doesn’t know anything, Royle says. “It is a really poor show.”
He says outstanding questions Resimac needs to answer are:
Where is the mechanism for looking after customers? Who is my support with Resimac? Are they going to have a service operating in New Zealand or is it going to be out of Australia?
What happens to trail commission? Are we going to get paid?
What happens in the event of clawbacks?
Royle who will be in Sydney over the weekend is hoping to have a meeting with McWilliam on Monday morning.
He fears the knock-on effect will dent confidence. “Selling non-bank products is much harder than selling trading bank products. It will make our lives harder.”
His staff are collating a list of iLender‘s raft of Resimac customers to send a newsletter reassuring them that although Resimac is withdrawing from the market for new business it is not going to go bust, their home loan is not at risk, their mortgage is not going to be called up and their home is secure.
Depending on conversations over the next few days, Royle says iLender might have to refinance some clients. “Some won’t be financeable. In the non-bank space Resimac has the most competitive price in the market. Their nearest competitor is 1% more expensive.”
While it is closing its New Zealand business, Resimac’s ts total segment revenue rose to $50.7 million last year from $37.7 million in 2022. However, interest costs doubled in a year and factoring in other expenses, it actually made a $2.2 million loss before income tax.
McWilliam says he would like to personally thank all its people, advisers and business partners who have supported the New Zealand business over the past 12 years.
