RedZed CEO Calvin Cordle
A human-centric credit process will remain a hallmark of RedZed’s business as it shifts its risk appetite toward much higher value lends.
RedZed, one of Australia’s leading lenders to the self-employed, has announced that maximum loan sizes will increase across its flagship lending product, SE Prime, to $2.5 million, from $1.5 million previously.
In addition, it has introduced a new premium product, SE Prime XL, that will cater to self-employed Australians requiring home loans between $2.5 million and $5 million.
RedZed believes it is one of only three non-bank lenders specialising in “alt documentation” loans to offer credit on these terms.
Ninety per cent of its entire loan book is alt doc.
The new SE Prime XL product has a maximum loan-to-value ratio of 75 per cent and is available to self-employed borrowers with current financials. It also offers the flexibility of alternative income verification (alt doc) for those who require it.
“We won’t be any different” Calvin Cordle, RedZed’s managing director told Banking Day.
“We have humans making our decisions, fast and fair, with risk added.”
Founded in 2006, RedZed now has around $3 billion in loans under management, most of it funded via mortgage-backed securities.
"Our new XL Prime product is financed through a third party. This differs from the rest of our book, which is funded exclusively through the banks/RMBS" Cordle said.
Arrears of 90 days or more stand at 1.39 per cent.
“That’s 61 borrowers and we’re working very closely with them” Cordle said.
“Demand is pretty good, and the new SMSF product launched in February [and aimed at retail and commercial lends] is really helping.
“Obviously there is not as much demand as in previous years, but there’s been very strong growth so far this year.”