Ever had a client whose financial paperwork isn’t exactly straightforward?
It’s a common scenario in mortgage brokering.
Standard loans just don’t cut it for everyone—especially those who are self-employed or have unique financial situations.
That’s where Resimac’s Specialist and Alt Doc loans come into play.
These products offer flexible lending solutions that could be the perfect fit for your non-traditional clients.
Let’s unpack what Resimac Specialist & Alt Doc loans are and see who can benefit from them.
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What Is Resimac Specialist Alt Doc?
Resimac Specialist Alt Doc loans are a type of specialised mortgage product designed for borrowers who don’t meet traditional banking or mortgage insurance guidelines. These loans cater to individuals who may not have the standard two years of financial documentation typically required by lenders.
This product is particularly beneficial for self-employed individuals, credit-impaired borrowers, contract workers, and others with unique financial circumstances. By offering alternative income verification methods and flexible loan structures, Resimac aims to make homeownership more accessible to a broader range of borrowers.
Understanding Resimac Specialist Alt Doc Loan Features
One of the standout features of Resimac’s Specialist Alt Doc loans is the end-to-end digital process.
This streamlines the application and approval process, making it more efficient for borrowers. Additionally, the loan structure is forgiving—defaults under $2000 are ignored, which can be a significant relief for those with minor financial hiccups.
Borrowers can choose from various income verification options, such as accountant’s letters, business activity statements (BAS), or business bank statements. This flexibility ensures that the loan can accommodate different financial profiles.
Debt consolidation is another key feature, including the ability to consolidate Australian Taxation Office (ATO) debts. For those with past financial difficulties, the loan also considers unlimited arrears, providing a lifeline for borrowers looking to rebuild their financial standing.
Another attractive feature is the availability of a 100% offset account, which can help borrowers save on interest. However, it’s important to note that not all features are available across all products, so borrowers should carefully review their options.
Types of Resimac Specialist Alt Doc Loans
Resimac offers two main types of Specialist Alt Doc loans: Prime Alt Doc and Specialist Alt Doc. Each is tailored to meet different borrower needs.
Prime Alt Doc Loans
Prime Alt Doc loans are designed for borrowers with relatively stable financial situations.
These loans allow borrowing amounts of up to $2 million, with a Loan to Value Ratio (LVR) capped at 70%. This makes them suitable for individuals who may not have full financial documentation but still maintain a strong financial position.
Specialist Alt Doc Loans
Specialist Alt Doc loans, on the other hand, offer more flexibility for borrowers with complex financial circumstances.
These loans permit borrowing amounts of up to $2.5 million, with a higher LVR of 65%. They are ideal for individuals who may have a more challenging financial history or require additional features like business debt refinancing.
Key Differences Between Prime and Specialist Alt Doc Loans
While both loan types share some similarities, there are notable differences.
Specialist Alt Doc loans offer more extensive cash-out options and higher debt consolidation limits. They also allow for the refinancing of business debts, which can be a crucial feature for self-employed borrowers.
Additionally, the maximum allowable LVRs differ, with Specialist Alt Doc loans offering slightly more flexibility.
Benefits for Targeted Borrowers
Resimac Specialist Alt Doc loans are particularly beneficial for individuals who lack the standard two years of financial documentation.
This makes them an excellent option for self-employed individuals or those with fluctuating income. The loans also provide flexibility for borrowers with complex business structures or inconsistent business performance.
By avoiding the stringent conditions often associated with traditional documentation loans, Resimac’s Alt Doc products offer a more accessible pathway to homeownership.
For borrowers with past financial challenges, these loans present an opportunity to secure funding and rebuild their financial stability. The forgiving loan structure and flexible features make them a viable option for a wide range of borrowers.
Eligibility and Application Process
Eligibility Criteria
To qualify for a Resimac Specialist Alt Doc loan, borrowers must meet specific eligibility criteria.
These loans are primarily targeted at self-employed individuals who may not have the standard financial documentation required by traditional lenders. A minimum duration of Australian Business Number (ABN) holding is typically required, although this varies depending on the loan type.
Borrowers must also demonstrate their income through alternative verification methods, making these loans suitable for those with non-traditional income streams.
Application Process
The application process for Resimac Specialist Alt Doc loans involves submitting alternative documentation to verify income.
This can include accountant’s letters, business activity statements (BAS), or business bank statements. Additional documentation, such as a Living Expense Declaration and Accountant’s Verification, may also be required.
The digital nature of the application process ensures efficiency, allowing borrowers to complete the process with minimal hassle. However, it’s essential to provide accurate and comprehensive documentation to avoid delays.
Criteria and Considerations for Borrowers
While Resimac Specialist Alt Doc loans offer numerous benefits, borrowers should carefully consider the specific loan requirements and associated risks.
For instance, higher LVRs can result in increased risk fees, which may impact the overall cost of the loan. It’s also crucial to evaluate the cost versus benefit of the loan, particularly in terms of interest rates and fees.
Borrowers should assess whether the loan’s features align with their long-term financial goals and circumstances. Understanding the implications of the loan’s terms and conditions is vital.
Borrowers should consult with a financial adviser or mortgage broker to ensure the loan is the right fit for their needs.
Final Thoughts
Resimac Specialist Alt Doc loans are a valuable option for borrowers who don’t fit the traditional lending criteria. With flexible features, alternative income verification methods, and a forgiving loan structure, these loans cater to a diverse range of financial profiles.
Whether you’re self-employed, credit-impaired, or have a complex financial history, Resimac’s Alt Doc loans provide a pathway to homeownership. By understanding the loan’s features, eligibility criteria, and application process, borrowers can make informed decisions that align with their financial goals.