Non-bank lender Resimac drops its maximum residential mortgage LVR to 90% from 95%

Non-bank lender Resimac drops its maximum residential mortgage LVR to 90% from 95%

By Gareth Vaughan

Just as the Reserve Bank's move to restrict banks' low equity residential mortgage lending is seen as presenting an opportunity for it, Australian non-bank lender Resimac has stopped doing the highest of high loan to value ratio (LVR) lending.

Resimac has reduced its maximum residential mortgage LVR to 90% from 95%. Adrienne Church, Resimac Home Loans' New Zealand general manager for mortgages, told interest.co.nz the reduction had been made following the exit of insurer QBE from underwriting lenders' mortgage insurance (LMI) in New Zealand.

Interest.co.nz reported on QBE's departure last month, with Kiwibank moving to self insure new high LVR home loans.

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Unless I'm dreaming Resimac haven't done 95% for a long time! Their 90% product is selling like hotcakes though.