The mortgage industry was a bit shocked today to hear that Resimac Home Loans will stop taking any new mortgage applications from 1st July 2024.
That’s just a few days from now!
Resimac Home Loans have been providing a non bank alternative to New Zealand borrowers since 2012 and has also been one of the more competitive with interest rates and innovative with product options.
But it’s all coming to an end which is a shame for Kiwis as we lose one of the better non-bank lenders.
In a media statement, the company said it had undertaken a comprehensive review of the New Zealand mortgage market and it has determined that the competitive environment will remain restrictive for non-banks for the foreseeable future.
Resimac Offered Lending Options
Resimac Home Loans offered a range of options for Kiwis that could not get, or did not want standard bank lending.
They offered standard prime full doc mortgages and also alternative doc options which were great for self employed who may not have had their financials to support the lending, but could demonstrate their incomes using other methods.
They also offered a range of “specialist” options for people that may have had credit issues, account conduct issues or mortgage arrears with a bank or other lender.
Some of the options were good, and others not so good BUT as a non bank broker it’s always good to have choices to offer people.
Alternatives to Resimac Home Loans
The good news is there are still other non bank lenders in New Zealand, and some very good ones too.
Resimac were one choice and they did suit some situations, but they were not always the easiest to deal with and that’s probably the reason that they didn’t get as much business as they should have.
There are some other good non bank lenders that offer good solutions.
You might need something short-term and there are some good lenders for this, but sometimes you are better to use a lender that offers a longer term option.
Let An Expert Help
The key when choosing a non bank lender is having a long-term plan.
Sometimes that means using a short-term lender if you know that you can exit that either by selling or by refinancing to a bank, or often it’s better to go with long-term non bank lender as long as you consider any exit costs.
I have been providing advice on non-bank lending for over 25-years and always love to look at options for different scenarios.
