Resimac Defies COVID-19 And Maintains Strong Business Levels
Leading non-bank mortgage provider Resimac has maintained strong business levels during the COVID-19 lockdown and seen a 30% increase in enquiry levels since Easter.
Head of New Zealand Luke Jackson said he was pleasantly surprised at the market response despite the country facing level-four movement restrictions and believed two main factors were behind it.
“We are hearing from our mortgage adviser network that banks are not focussing on new business and are preoccupied with processing COVID-19 hardship applications. As a result more borrowers and advisers are turning to non-banks.
“We are also receiving an increased number of refinance applications, as well as applications from people who have committed to purchase a property only to have their lender not honour their pre-approvals,” Mr Jackson said.
“This is happening against the longer-term backdrop of non-bank lenders taking market share away from banks. Non-banks are now providing interest rates that match bank rates. For example, Resimac recently launched a 3.49%pa variable mortgage rate and a two-year fixed rate of 3.39%pa.
“The view that non-banks only pick up customers banks do not want to deal with is changing. Non-banks are now being seen as a true alternative to trading banks. On top of this banks do not appear to be offering ‘cashbacks’ any more, which was the primary tool banks previously used to buy their customers,” he said.
"I expect in the coming months the non-bank share of the mortgage market will continue to grow as more advisers and borrowers recognise the attractiveness of non-bank lending solutions," Mr Jackson added.
Resimac NZ Home Loans Limited (Resimac) is one of New Zealand’s premier non-bank lenders, with headquarters in Auckland and well-established operations serving advisors and consumers throughout the country. Resimac is a 100% owned subsidiary of the Australian Securities Exchange-listed Resimac Group Ltd, which operates under a fully integrated business model comprising origination, servicing and funding prime and non-conforming residential mortgages in Australia and New Zealand. With over 250 people operating across Australia, New Zealand and the Philippines, the Resimac Group has in excess of 50,000 customers with a portfolio of mortgages on balance sheet of greater than $10b and assets under management in excess of $13b.