Interest Rate Updates | Agility

08th Nov, 2022 | Agility Product

As you are aware, the Reserve Bank of Australia (RBA) increased the official cash rate by a further 25bps following their November meeting.

As a result, Resimac will be increasing the variable interest rates for all Agility (Resimac) -funded home loan customers by 25bps. Resimac will also be increasing the new business variable rates across all our home loan products by 25bps – Prime (Full Doc), Prime Alt Doc and Specialist (Full Doc and Alt Doc).

But we have some good news, too. Resimac will be removing the loading on all interest only products, which brings pricing down on these loans to principal and interest rates. Resimac’s investor bundle offer, which gives your residential investor clients the opportunity to get owner-occupied pricing on investment home loans by bundling their owner-occupied and investment loans together, has also been extended. Combine the two and your investor clients can get their investment loans on interest only repayments at owner-occupied principal and interest rates.

Both of the above promotional offers will run to 31 January 2023.

These changes come into effect on Thursday 10 November 2022.

New Interest rates will be uploaded into the broker centre in due course.

For settled customers

For your existing customers with Resimac-funded loans. Customers will be informed of any specific changes to their interest rates and repayments via a letter.

They will be given adequate time to prepare for the changes. 

For pre-settled customers

For all applications not yet unconditionally approved as at the effective date, future conditional approval and unconditional approval letters and loan documents will be updated with the new interest rates.

Depending on when their loan achieved conditional approval and when it settles (and accounting for recent changes to living expense classifications and benchmarking), additional serviceability testing may be required as follows:

  • If conditionally approved before 23 September 2022, an additional serviceability review will be required accounting for the new interest rates at the time, before unconditional approval is provided.
  • If conditionally approved on or after 23 September 2022, no further serviceability review is required if the loan settles on or before 13 November 2022. If the loan settles after 30 November 2022, an additional serviceability review is required accounting for the new interest rates at the time.

For all customers who have reached unconditional approval – with documents issued and awaiting settlement – customers will be contacted via email to advise of their new interest rate. For those with unconditional approval, regardless of document status, no further review of their serviceability is required.

For any applicant that requires an increase in their loan amount following an approval, a new servicing test based on rates at that time will need to be undertaken.

For further information please email [email protected] or contact your relevant Business Development Manager.

Kind regards, 
Arthur Karvelas
Head of Resi Distribution

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