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Non-bank lender RedZed has announced that maximum loan sizes will increase across its SE Prime lending product to $2.5 million and has introduced a new product, SE Prime XL.
RedZed confirmed the new SE Prime XL product has a maximum loan-to-value ratio (LVR) of 75 per cent and is available to self-employed borrowers needing home loans between $2.5 and $5 million and offers alternative income verification (Alt Doc).
According to RedZed, these changes are in response to rising property prices and mounting cost-of-living pressures making it “increasingly difficult for the 2.4 million self-employed Australians to secure a mortgage”.
Indeed, CoreLogic data has shown that home prices across the nation’s capitals increased by 33.9 per cent since March 2020, while the cost of building a typical new dwelling rose by 26.6 per cent nationally during this same period.
RedZed managing director Calvin Cordle said: “When RedZed launched in 2006, the median house price in Sydney was $523,000 and $352,000 in Melbourne, and we could offer loans up to a maximum of $2 million. Fast forward to 2024, and median house prices have more than doubled.
“The banks are risk-averse and very rigid in assessing the creditworthiness of self-employed borrowers and their income and ability to service a loan.
“Being a specialist lender to the self-employed, we understand the intricacies of running a business, and we look at more than just the numbers on the annual tax return.”
Cordle further stated that the non-bank lender is always on the lookout for “new ways to improve self-employed lives and help our broker partners access flexible solutions for their clients.”
“Buying or renovating a home has become a lot more expensive, and the launch of our new SE Prime XL product will enable brokers to help the millions of successful self-employed across Australia access up to $5 million in finance for the first time,” he said.
“We understand small-business owners often urgently need capital to invest in their business or other purposes.
“Our new SE Prime XL product provides access to cash-out requests up to the maximum loan value of $5 million for verified purposes.”
The changes came as RedZed recently launched two new self-managed super fund (SMSF) products – “Super Resi SMSF” and “Super Commercial SMSF” – which can be used to refinance existing SMSF loans or purchase residential/commercial investment properties.
[RELATED: RedZed expands SMSF offering]
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