Resimac Prime Non-Gen 95: What Is It (And Who Is It For)?

Think you need a hefty deposit to buy your first home?

Like many would-be homeowners, you might feel locked out of the market due to hefty deposit demands.

But what if there’s a way to get into the property market, even if your savings aren’t from traditional sources?

Resimac’s Prime Non-Gen 95 loan could be the key.

Let’s find out what this product offers and who can benefit from it.

💸

Eliminate hours of manual data crunching and focus on building relationships with new clients.

Track My Trail makes it easy for brokers to keep track of lost & gained trail, discover clients who have paid off big chunks of their loans, and identify your most profitable clients.

Get Track My Trail for free today—no credit card required.

What Is the Resimac Prime Non-Gen 95 Loan?

The Resimac Prime Non-Gen 95 loan is a non-conventional home loan product that allows borrowers to secure a mortgage with a deposit sourced from non-genuine savings. Non-genuine savings refer to funds that haven’t been accumulated over time, such as gifts from family members or government grants. This flexibility makes the loan accessible to those who may not have traditional savings.

With a maximum LVR of 95%, borrowers can finance up to 95% of the property’s value, requiring only a 5% deposit. This feature is particularly beneficial for individuals who have limited savings but can demonstrate financial stability through other means. The loan is available to both PAYE (Pay As You Earn) employees and self-employed applicants, broadening its appeal.

Key Features and Benefits

Loan Specifications

The Resimac Prime Non-Gen 95 loan stands out for its high LVR, allowing borrowers to enter the property market with a smaller deposit. This is especially advantageous for first-time buyers who may struggle to save a large sum. The loan also accepts non-traditional deposit sources, such as financial gifts or grants, making it a flexible option for those with alternative funding arrangements.

Additionally, the loan is designed to accommodate a wide range of employment types. Whether you’re a PAYE employee with a steady income or a self-employed individual with variable earnings, this product offers a viable pathway to homeownership.

Rate and Fee Structure

One of the key selling points of the Resimac Prime Non-Gen 95 loan is its competitive interest rates. While these rates may be slightly higher than those for standard prime loans, they are well-suited to the unique borrower profiles this product targets. Borrowers also have the option to pay a $299 annual fee under the Resimac Prime Flex product, which offers a lower interest rate in return.

In terms of fees, applicants should be prepared for standard charges such as application fees and ongoing annual fees. However, these costs are balanced by the loan’s flexibility and tailored features, making it a worthwhile consideration for eligible borrowers.

Eligibility Criteria

To qualify for the Resimac Prime Non-Gen 95 loan, applicants must meet specific criteria. The loan is available to Australian residents who can provide proof of income and employment. Both PAYE employees and self-employed individuals are eligible, provided they meet Resimac’s financial assessment standards.

The property being purchased must also meet certain requirements. Resimac evaluates the type and location of the property to ensure it aligns with their lending policies. Meeting these criteria is crucial for securing approval and accessing the benefits of this unique loan product.

Application Process

Documentation Required

Applying for the Resimac Prime Non-Gen 95 loan requires a range of documents to verify your identity, income, and property details. Essential documents include government-issued identification, recent payslips or tax returns, and information about the property you intend to purchase. Applicants may also need to complete a living expense declaration to provide a comprehensive view of their financial situation.

Resimac simplifies the application process with an end-to-end digital platform. This system allows borrowers to upload documents, track their application status, and communicate with Resimac representatives, all from the comfort of their home.

Step-by-Step Process

The application process begins with an initial enquiry, where borrowers can assess their eligibility and explore their options. Next, applicants can choose to work with a mortgage broker or apply directly through Resimac’s digital platform. Preparing all required documentation in advance can significantly streamline this process.

Once the application is submitted, Resimac reviews the information and conducts a financial assessment. If approved, the loan proceeds to settlement, enabling borrowers to finalise their property purchase. Following these steps carefully can help ensure a smooth and efficient application experience.

Advantages Over Traditional Mortgage Products

The Resimac Prime Non-Gen 95 loan offers several advantages over traditional mortgage products. Its flexibility in deposit sources is a standout feature, accommodating borrowers who rely on non-genuine savings like gifts or grants. This makes it an excellent option for first-time buyers or those with unconventional financial circumstances.

The loan also provides competitive interest rates compared to other non-conventional products, making it a cost-effective choice for eligible borrowers. Additionally, its digital application process eliminates the need for in-person interactions, offering convenience and efficiency.

Potential Drawbacks

While the Resimac Prime Non-Gen 95 loan has many benefits, it’s important to consider its potential drawbacks. The interest rates, while competitive, may be higher than those for standard prime loans. Borrowers should weigh this cost against the loan’s unique features to determine if it’s the right fit for their needs.

Another consideration is the potential for application processing delays. System limitations or rigorous policy requirements can sometimes extend the approval timeline. Additionally, the lack of physical branches may be a disadvantage for borrowers who prefer face-to-face interactions.

Borrower Profiles and Scenarios

Case Study: Using Gift as Deposit

Consider a first-time homebuyer who receives a financial gift from their parents to cover the deposit. Traditional lenders may require the deposit to come from genuine savings, making it difficult for this individual to secure a loan. The Resimac Prime Non-Gen 95 loan, however, accepts gifts as a valid deposit source, enabling the borrower to purchase their first home.

This flexibility not only makes homeownership more accessible but also allows borrowers to leverage financial support from family or grants without facing additional hurdles.

Credit-Impaired Borrowers

The Resimac Prime Non-Gen 95 loan is also suitable for borrowers with less-than-perfect credit histories. While traditional lenders may impose strict requirements, this product offers features and waivers that accommodate credit-impaired individuals. By providing a pathway to homeownership, the loan helps these borrowers rebuild their credit while achieving their property goals.

Conclusion

The Resimac Prime Non-Gen 95 loan is a versatile and inclusive product that addresses the needs of borrowers with non-traditional deposit sources or credit challenges. Its high LVR, flexible deposit options, and competitive rates make it an attractive choice for a wide range of applicants.

Whether you’re a first-time buyer relying on a financial gift or a self-employed individual seeking a tailored solution, this loan offers a pathway to homeownership. For personalised advice, consider consulting a mortgage broker or Resimac representative to explore your options further.

Track My Trail Team

The Track My Trail Team develops software to simplify trail book management for mortgage brokers. Their tools provide fast and practical insights to help brokers get the most out of their trail books.