Low equity loans for good brokers only

RESIMAC, which only offers its loans through mortgage advisers, is limiting it to those  who are loyal and meet specified requirements.

General manager Adrienne Church says it is restricting low equity lending to "selected relationship" to ensure its high LVR loans remain viable for the long term, that they are priced correctly and advisers are rewarded for loyalty and fully packaged deals.

She says RESIMAC's quality expectations for deal packaging and portfolio balancing include having appropriate LVR spreads (i.e: not all low equity lending), product diversification and conversion rates. The rules are subject to a monthly review to ensure RESIMAC Home Loans portfolio remains balanced.

"Existing pipeline deals will be honoured for everyone," she says.