Resimac bumps up broker commission rates

The motive for the increase is two-fold

Resimac bumps up broker commission rates

Resimac has increased the commission rates payable on two products, in a move to raise the level of support it provides to brokers and encourage diversification beyond prime lending.

From March 8, the non-bank lender increased the upfront and trail commission rates applying to prime alt doc and all specialist products. 

The new rates, which apply across both product suites, are 0.75% + GST (upfront commission) and 0.20% + GST (trail commission), up from 0.65% + GST and 0.15% + GST respectively.

In addition to new business lodged from March 8, Resimac confirmed the new commission rates applied to applications in the pipeline that had not settled prior to March 8.

Resimac general manager distribution Chris Paterson (pictured above) said the non-bank lender was committed to increasing the level of support it provided to brokers who serviced self-employed and credit-impaired borrowers.

“As the specialist for the self-employed and credit-impaired, we recognise the additional time, effort and skill that brokers put in to service these kinds of clients, and we have increased the upfront and trail commissions on our prime alt doc and specialist products accordingly,” Paterson said.

Recent declines in new home lending activity amid rising interest rates has prompted an increasing number of brokers to consider diversification strategies. 

By increasing commissions, Paterson said Resimac aimed to get more brokers interested in diversifying their client base beyond prime customers.

Its prime alt doc product caters to near-prime borrowers who are self-employed and need alternative forms of income verification, while specialist full doc is geared towards credit-impaired borrowers who may have experienced hardships outside of their control.

“Resimac’s prime alt doc and specialist products are a great fit for self-employed and credit-impaired clients, and we encourage brokers to speak to their Resimac BDM or relationship manager to learn more,” Paterson said.

Features of Resimac’s prime alt doc product include unlimited cash out up to 80% LVR and up to $500,000 of business debt refinance (upon application).  Its specialist full doc product allows unlimited debt consolidation and business debt refinance, with up to 90% LVR purchase or 85% LVR refinance.

Earlier this month, the non-bank lender announced a half-year statutory net profit after tax of $38.9 million, with $2.4 billion of home loans settled over the half-year.

For a limited time, the non-bank lender is offering eligible applicants owner-occupier pricing on their investment property when they bundle their prime full doc and prime alt doc owner-occupier and investment loans with a loan-to-value ratio (LVR) of up to 80%.

Additionally, Resimac has waived its interest-only loading, enabling eligible clients to receive full principal and interest pricing on all of its interest-only loans.