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Non-bank lender Resimac Financial Services has announced that it will no longer require mortgage insurance on two of its prime home loans.
Resimac said borrowers will now be able to avoid LMI on both its prime standard and premium loans to 85 per cent LVR for properties in Category 1 locations.
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The offer is available to both owner-occupiers and investors, and will carry a maximum loan amount of $1.1 million.
Applications under the 85 per cent no-LMI policy will be assessed using Resimac’s prime lending criteria. Interest rates will start at 4.53 per cent with a one per cent risk fee applicable for LVRs between 80 per cent and 85 per cent when LMI is not taken out.
Allan Savins, Resimac’s chief commercial officer, said the lender is constantly looking for ways to deliver both transparency and efficiency to the loan application process.
“In removing the need to obtain LMI at these LVRs, we are effectively removing one layer in the assessment process,” he said.
“By offering both prime and specialist lending solutions, Resimac is able to garner more comprehensive data on borrower behaviour and related portfolio performance.
“It is this in-depth knowledge that gives us the confidence to deliver initiatives such [as] 85 per cent no-LMI prime loans.”
This is not the first time that Resimac has scrapped mortgage insurance this year, with the lender removing LMI for its standard prime full-doc loans to 80 per cent LVR and its SMSF loans to 70 per cent LVR in March.
[Related: Resimac streamlines specialist products]
