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Non-bank lender Resimac Financial Services has announced key policy changes to one of its loan products, aimed to provide more choice for self-employed borrowers.
Resimac has increased the maximum loan amount for its Prime Alt Doc to $1.5 million for borrowers seeking to borrow up to 75 per cent of the security value, as well as giving them the ability to access cash out for any worthwhile purpose, and has removed automated credit decision-making.
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Additionally, borrowers now have more flexibility when it comes to verifying their income, with the option of either an accountant’s letter, six-month business activity statements or three-month business bank statements to support their declared income.
“There are over two million self-employed people in Australia operating in a variety of industries. This represents a significant opportunity for brokers when you consider that many of these people will at some stage require finance to either purchase a home, consolidate their existing debts or access equity for purposes including business growth,” Allan Savins, Resimac’s chief commercial officer, said.
“Not all of these borrowers will have up-to-date financials and many may be going through a significant growth phase in their business where the most recent financials available are not a true reflection of their current trading conditions. An alt-doc loan is the perfect solution for these borrowers.”
Mr Savins said the self-employed sector has been largely under-serviced since the introduction of the National Credit Code in 2010.
“The regulatory guides don’t prohibit brokers from offering alternative documentation solutions to self-employed borrowers, and whilst Resimac certainly has a comprehensive range of full-documentation solutions, we also haven’t forgotten those self-employed borrowers who may not have their current two-year financial statements prepared,” he said.
[Related: Resimac takes knife to mortgage insurance]
