Resimac Home Loan Review

resimac home loan review
Expert Rating - (3.5/5)
3.5/5
Resimac is a non-bank lender that was founded in 1985. They are a little bit different to your traditional banks that we commonly see in advertisements. As a non-bank lender, they are subject to different financial rules and regulations compared to a normal bank. This potentially gives Resimac a competitive edge over other lenders when it comes to assessing your credit and your borrowing capacity. With a wide range of financial products, does that make Resimac a good lender for everyday Australians? Who are Resimac Home Loans ideal for? Let’s find out.
resimac home loan expert review

Reservoir Finance Score Breakdown

How does Resimac fair? Let’s break it down. Our Reservoir Finance rating assesses a lender on five key criteria:

If you have a good credit rating and are looking for the lowest rates, you may be better off with one of our other lenders. However if you are looking to borrow as a corporate trustee, or you have a below average credit score, the interest rates and fees charged by Resimac are reasonable and cheaper than other lender alternatives.
Resimac’s borrowing assessment criteria is relatively generous with all other factors being equal compared to others in the market. Although they offer higher rates, they use your actual repayment to assess your existing loans. As a result, we find that Resimac may lend slightly more money (borrowing capacity) than other major banks and second tier banks.
As one of Resimac’s target markets is borrowers with average or bad credit, their assessment criteria is a little bit looser compared to other banks and are more accepting of the type of income you can declare and use for assessment via different loan products.
Resimac has a wide range of online loan facilities for their customers. Whilst they have great redraw, BPAY, offset and extra repayment facilities, they do not have any physical branch which may be an annoyance for those who prefer it.
Our clients find Resimac’s customer service slightly understaffed. Email replies can take a few days for them to respond, whilst calling Resimac can also take a while with (potentially) intentional call disconnects after a certain time period. When applying for a loan, in general, you need to wait for a 1-2 weeks time for credit assessment. However when there are seasonal peaks, this may extend further, which may not be ideal for those wanting to close a deal quickly.

Is Resimac a good lender? Our final score...

Final Score - 3.5 out of 5
3.5/5
Overall, Resimac is a good alternative for certain borrowers including: bad credit, trusts, low doc, no LMI and investors looking for a high LVR. However there may be a couple of things about Resimac which might be a dealbreaker for you: no physical branch, an outdated looking online portal, long wait times for phone support and (sometimes) slow processing times for a loan application. Overall, Resimac’s products offer a good package for certain personal circumstances (such as lending to trusts, or low doc loans). We consider their products to be no frills, simple and to the point with reasonable fees for the types of borrowers they are targeting.

What we like

What we don't

Reservoir Finance is an award winning mortgage broker

Resimac is a non-bank lender which has a 30+ year history in Australia. They service over 50,000 customers and are growing. Their loan products target very specific niches and are funded by either wholesale funding or self funded. This means that they can offer competitive rates for certain niches without being bogged down by banking laws. Resimac does not have any physical branches and their loans are accessible through brokers only. Resimac is also listed on the Australian Securities Exchange and is regulated by the Australian Securities and Investments Commission (ASIC). The Resimac Group owns a few brands including Resimac, State Custodians and homeloans.com.au (now rolled up into Resimac).

Resimac offers a wide range of home loan products for owner occupiers and investors. Their home loan package products have two categories: Prime and Specialist. Their Prime loan products are geared towards home loans and are well suited towards self-employed or PAYG customers (solid employment history). Within Prime loans, there are different types of features/products available including no-LMI loans and high LVR loans (up to 95% LVR). 

Resimac’s Specialist loan products are catered towards borrowers who may have unique circumstances such as contractors, credit impaired or self-employed. Even within these products, Resimac offers competitive rates and feature sets. These following home loans are available for both owner occupiers and investors.

Resimac’s Specialist loan products are catered towards borrowers who may have unique circumstances such as contractors, credit impaired or self-employed. Even within these products, Resimac offers competitive rates and feature sets. These following home loans are available for both owner occupiers and investors.

Overall, Resimac provides competitive interest rates in the market for certain borrowers. You may find lower rates with other lenders if you have good credit history and savings. Currently owner occupied home loan rates start from 2.81% for variable for loans with high deposit (<80%LVR). Resimac does not offer fixed interest loans., Investment home loan rates start from 3.06% for variable rates with high deposit (<80%LVR). Further discounts may apply, depending on the loan size.

In terms of fees, here is a summary for most relevant fees.

 

Resimac offers very competitive facilities for all of their products. All come with unlimited redraws (Minimum $100 or Maximum Redraw $20,000/day) and 100% offset. This can really help borrowers with savings to reduce their borrowing costs over the long term. All products have the ability for payments to be BPAY’d and Direct Debited.

One thing to note is that the offset account almost works like a redraw. Everything is done online / digitally. This means to transfer money in, you will need to BPAY or bank transfer. To transfer money out, you have to submit a request and it will take 1-3 business days for the offset amount to appear in your nominated bank account. This may be an inconvenience to some people who need cash quickly.

For sophisticated investors who purchase properties in a company or trust or for people who have bad credit or have difficulties to present full financials, Resimac has competitive rates backed with very good facilities (especially 100% offset). Resimac also has a range of no LMI options and high LVR lending options too that are worth considering.
Max LVR depends on many factors including lender, security type, location (postcode), size and loan purpose. Resimac have a unique offering where they can provide up to 85% LVR with no LMI required (but comes at a cost of higher interest rates).

For borrowers under a government grant or receiving a gift (eg from parents), Resimac also has a product that offers up to 95% LVR plus LMI for completed dwellings only. This means Resimac can offer 95% LVR plus LMI for both owner occupiers (new purchases or refinance) and investors.
Borrowing capacity depends on dozens of factors, including family size, salary, extra income, liability, living expenses (over ten categories) and more depending on the lender. Because Resimac is not a bank lender, it means they are not bound by some of the laws that Australian banks need to follow. Resimac uses their own assessment rate and follows the Household Expenditure Method in assessing your expenses. This means that their borrowing capacity for certain borrowers is actually more than if you went with a normal bank. Resimac caps their risk exposure to potential borrowers to $2 million depending on the borrower and how much deposit you’re willing to pay.

Due to the unique nature of Resimac’s assessment, please contact us as we have access to Resimac’s loan assessment calculator to give you a more accurate picture of your borrowing capacity.
Resimac does not have any physical branches. As a result they can only be contacted via phone, email or through your broker. Our clients find that in peak seasons, it takes some time for customer service to answer your phone call or to reply to your email. Additionally when your loan settles, there is not much information about how you can get access to your online account. Our clients also find that Resimac has long phone queues which automatically end your call after 5-10 minutes, meaning you have to manually call back each time to be placed in the queue.

For brokers, they will try and provide loan assessment and approvals within 10 business days but we have found that in busier periods it will take longer. Once you get past the challenge of contacting Resimac, it is a pleasant experience with their team being willing to help you out with your queries.

Resimac home loans cannot be applied for directly. They can only be accessed through a Resimac broker (like Reservoir Finance). This is so that brokers can assess the eligibility and suitability of their loan products for potential customers. If you are interested in seeing if Resimac home loan products are right for you, please contact us via phone or using the form below!

We find the most popular Resimac home loan product has been the Resimac Prime or Resimac Prime Flex. Due to Australians seeking to move away from the Big 4, Resimac has seen growth over the past couple of years due to their competitive rates and good facilities for certain customer types. With its 100% offset, it is also a popular option for sophisticated investors looking for a low rate buying property in trusts or companies. Resimac also offers decent no LMI and high LVR options too.

Interested in applying for a Resimac Home Loan?

Contact Reservoir Finance today and let us help determine if a Resimac Home Loan is best for your personal circumstances. Their products are suited to a particular type of customer so they might not be the best for your personal situation. It’s best to chat with us to see if it is suitable for you or if there are other better loan products on the market.

The Reservoir Finance team aims to help Australians fulfill their dreams of home ownership, achieving financial freedom and protecting their hard earned money. We are a values based group of finance brokers and always seek to put your needs first as your success is in our best interest. Contact us below or find out more about us here.

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