Resimac

[Judge]

Does anyone have any experience in dealing with Resimac? Do they negotiate on the rates? Their rates are advertised on their site, and are pretty high for investors. Is there any room for negotiation?

[donna]

You can get 80 % LVR from them and they are really busy - so I doubt it.

cheers,

Donna

[brokerman]

Does anyone have any experience in dealing with Resimac? Do they negotiate on the rates? Their rates are advertised on their site, and are pretty high for investors. Is there any room for negotiation?

I do more with Resimac than any other Broker so here's the reply. They will lend at 80% to Investors when the Banks can't so their rates reflect this. Look at about 1% over a Bank two year rate (who can't lend anyway so it's immaterial) so a two year fix will be around 5.3%. The 4.9% on their site is for owner occupied and they add 0.4% for investors. Turnaround times are not flash as they swamped with applications, we get them faster than most but don't sign a S&P Agreement with anything less than a 10 day finance clause in it and they always want a Valuation from a panel Valuer, no exceptions. Hope that helps. They also still accept applications from those overseas however these take a long time to process. There are other non Bank lenders too, all more expensive or high longer lockin periods/fees.

[Judge]

Thanks Brokerman. Very comprehensive and helpful. Its amazing that 2 years ago i would possibly commit a crime to get a rate of 5.5%, and now i do not want to pay it because the going rate is 4.2%. How times change.

[brokerman]

Thanks Brokerman. Very comprehensive and helpful. Its amazing that 2 years ago i would possibly commit a crime to get a rate of 5.5%, and now i do not want to pay it because the going rate is 4.2%. How times change.

You would be amazed how many time I hear this! At the end of the day it's $1000 a year more per $100,000 borrowed and it means a person can join the market.

[propertybuyingNZ]

Hi Brokerman,

does it mean they do not do pre-approvals?
meaning unconditional offers are pretty much out of question with Resimac?

Thanks!

[brokerman]

Hi Brokerman,

does it mean they do not do pre-approvals?
meaning unconditional offers are pretty much out of question with Resimac?

Thanks!

We do them on their behalf and then submit the full application. Works really well and very quick.

[Judge]

Is it true that they claw back the commission from brokers if the customer refinances withing 27 months and brokers get customers to sign reimbursement agreements to get paid by the customer in such a case?

[brokerman]

Is it true that they claw back the commission from brokers if the customer refinances withing 27 months and brokers get customers to sign reimbursement agreements to get paid by the customer in such a case?

All Banks have a clawback period and 27 months is about right. I have a provision in my Agreements, like many Brokers I don't work for love! In practice if I do the refinance then I waive the clawback.

[Judge]

For sure you guys need to be paid no doubt. I just do not remember this being an issue that was explicitly discussed with other brokers. Thanks for the info.