Resimac Asset-Based Lending Terms: A Guide for Self-Employed Borrowers

With the Reserve Bank holding the cash rate at 4.35 per cent into the first half of 2025 and APRA’s 3‑percentage‑point serviceability buffer unchanged since October 2021, the arithmetic on self‑employed loan applications has tightened dramatically. A sole trader generating $130,000 in pre‑tax profit who cleared assessments comfortably two years ago now faces a borrowing capacity reduction of roughly 25 per cent, simply because the assessment rate — bank bill swap rate plus a margin — has climbed past 9 per cent. For company directors drawing irregular dividends, trust beneficiaries receiving fluctuating distributions, and contractors on rolling agreements, the standard PAYG‑based credit model often produces a flat rejection even when the applicant holds a substantial property portfolio with significant equity.

That dislocation between equity and income‑verified borrowing power is exactly the problem asset‑based lending was built to solve. Resimac, one of the major Australian non‑bank lenders, has sharpened its asset‑led solution for self‑employed borrowers through a dedicated product line that prioritises the quality of the security property, verified asset position and a demonstrated exit strategy over granular income serviceability. Where a mainstream prime lender might cap borrowing at a multiple of tax returns, Resimac’s framework allows the equity in a well‑located residential property to carry the decision, provided the borrower can evidence that the loan can be serviced or refinanced at a later date. The product arrived at a moment when the spread between full‑doc and alt‑doc rates has narrowed to roughly 100–150 basis points, making the asset‑path premium more palatable for business owners who would otherwise be locked out of credit entirely.

What Sets Resimac’s Asset‑Based Lending Apart

Resimac’s asset‑based proposition is designed to sit outside the standard alt‑doc category. While typical low‑doc loans from lenders such as Pepper Money or La Trobe Financial still lean on a reduced set of income documents — most commonly six months’ BAS or an accountant’s declaration — Resimac’s asset‑lend pathway allows the credit assessment to rest largely on the property asset itself. The valuation, location, land‑to‑asset ratio and marketability of the security, along with the borrower’s overall equity position, become the primary inputs. The borrower is still required to provide some income sign‑off, but the product guide plainly states that the assessment “focuses on the exit strategy capacity rather than the ongoing income serviceability of the applicant,” according to the Resimac Asset Lend Product Summary effective 1 February 2025.

The Role of the Exit Strategy

A central pillar of the policy is the exit strategy. Resimac expects the borrower to articulate a credible plan to repay or refinance the loan within a defined term, typically three to five years. This does not need to be a binding commitment, but it must be supported by evidence: a letter from an accountant projecting a capital event, a contract of sale on a business, a development application approval, or a signed refinance undertaking from another lender. Brokers are trained to submit this documentation alongside the application, and Resimac’s credit team explicitly rates the plausibility of the exit on a qualitative scale. In practice, a self‑employed borrower with three unencumbered investment properties totalling $2.8 million in value and a plan to sell one within 24 months would satisfy this requirement without a detailed income reconciliation.

Acceptable Borrower Structures

Resimac accepts applications from individuals, partnerships, discretionary trusts and companies, provided the borrower is self‑employed and operates a business registered in Australia for at least 12 months. A key nuance is that the borrower does not need to demonstrate a minimum recurring income threshold; the product guide refers only to “a demonstrated capacity to fund ongoing interest obligations,” which can be satisfied through rental income from the subject property, dividends from a company that holds substantial retained earnings, or even interest‑bearing deposits. According to a broker bulletin issued by Resimac on 3 March 2025, the lender will soon extend eligibility to self‑managed superannuation fund borrowers under a limited recourse borrowing arrangement, subject to additional trustee covenants.

Loan‑to‑Value Ratios and Property Criteria

The LVR schedule for Resimac asset‑based loans rewards capital city and inner‑ring metropolitan postcodes while applying larger discounts in regional areas. The base maximums are:

• Capital cities and major metropolitan centres (postcode‑driven): 75 per cent LVR on properties valued up to $2.5 million.
• Regional centres and larger inland towns (population > 50,000): 70 per cent LVR on values up to $1.5 million.
• Rural and remote areas: 60 per cent LVR on values up to $1 million.

For security properties above these value bands, LVRs scale down by 5 percentage points per $500,000 increment. No property valued under $300,000 is eligible for the product — a floor that reflects the lender’s focus on liquid, readily saleable residential assets.

Property Types and Minimum Standards

Resimac’s asset‑lend security policy accepts standard residential houses, townhouses, strata‑titled units in developments with more than 12 lots, and small apartment blocks (up to four units on a single title). The lender will not accept serviced apartments, studio units under 35 square metres, properties in postcodes with a high exposure to mining‑dependent economies (as listed in its quarterly exclusion schedule), or properties with major structural defects flagged in the valuation report. For strata units, the strata‑plan must show no more than 25 per cent commercial or short‑stay accommodation use, a threshold that is stricter than some peers such as Brighten (30 per cent) but in line with Liberty Financial’s prime alt‑doc policy.

LVR Buffers and Valuation Type

Resimac requires a full internal valuation for all asset‑based applications; kerbside or automated valuation models are not accepted. The lender applies an additional 5‑percentage‑point LVR haircut when the property is located in a postcode market that has experienced price declines of more than 3 per cent over the preceding six months, as determined by Resimac’s internal research unit. This dynamic LVR overlay, introduced in August 2024, has already clipped borrowing power for parts of Melbourne’s inner‑east and Perth’s fringe suburbs, according to the March 2025 broker update.

Documentation: The BAS or Accountant Letter Route

Although Resimac’s asset‑based product does not hinge on full income verification, some documentation is still required to confirm the borrower’s status and capacity to meet ongoing interest payments. The product guide lists four acceptable documentation pathways, with the first two being the most common.

1. Six‑Month BAS Statement

Borrowers can provide the most recent six months of lodged Business Activity Statements. Resimac will take the average of the GST‑exclusive sales figure and annualise it. For a sole trader whose BAS shows quarterly revenues of $45,000, $52,000, $48,000 and $50,000 over the past four quarters, the lender calculates an annualised revenue of $195,000 and imputes a net‑profit margin based on the industry segment code provided in the BAS. The margin assumptions range from 15 per cent for retail trade to 40 per cent for professional services, and they are published in the Resimac BAS Profit Rate Schedule (updated quarterly). On that basis, a professional services operator with $195,000 gross revenue would be imputed as having $78,000 in net income available for serviceability screening. The lender does not, however, use that imputed income to calculate a traditional serviceability ratio; it instead verifies that the imputed income comfortably exceeds the estimated annual interest cost by a factor of at least 1.2 times. This “interest‑coverage” test is far less onerous than a full surplus‑income analysis.

2. Accountant’s Letter

An alternative is a letter from a registered tax agent or CPA, dated within 60 days of the application, that confirms the borrower’s business is solvent and that the borrower’s income is sufficient to support the loan. The letter must state the borrower’s estimated taxable income for the current financial year, the last two years’ actual taxable income, and a statement that the business has been trading for at least 12 months. Resimac will cross‑check the figures against the borrower’s last‑lodged tax return and the Australian Business Register; any inconsistency of more than 15 per cent triggers a request for a full set of financial statements. Brokers say the accountant letter is quicker but carries a higher rejection risk if the income stated is not corroborated by at least some trail of BAS lodgements.

3. Bank Statement Analysis

Introduced in late 2024, this pathway allows the borrower to supply 12 months of business transaction bank accounts. Resimac uses a proprietary transaction‑categorisation algorithm to calculate average net monthly cash‑in, stripping out GST, one‑off transfers and non‑business deposits. The resulting net monthly figure is annualised and then treated as the income proxy for the interest‑coverage test. This method works well for contractors with irregular inflows, but it requires the accounts to be in the same entity name as the borrower, and the accounts must show a consistent pattern of inflows for the full period.

4. Asset‑Plus Revenue Model

For borrowers with high liquid asset holdings and minimal current income — such as a business owner who has sold a company and is living off the proceeds — Resimac accepts a combination of a statement of financial position (assets and liabilities) verified by a CPA and a 12‑month cashflow projection. The lender will then disregard the standard income test altogether and rely on the borrower’s “asset‑backed repayment capacity,” meaning the loan can be serviced from the liquidation of securities if required. This model is reserved for loans below 60 per cent LVR and requires a minimum of $500,000 in verified liquid assets, including cash, shares or bonds.

Pricing, Fees and Repayment Structures

Resimac’s asset‑based product carries a premium over its prime full‑doc range, but the spread has compressed over the past 18 months as the lender has grown the book. As of the rate card published on 3 February 2025:

• Variable rate (owner‑occupied, principal‑and‑interest): starts at 6.99 per cent p.a. (comparison rate 7.38 per cent p.a.) for LVRs up to 70 per cent.
• Variable rate (investment, interest‑only): starts at 7.29 per cent p.a. (comparison rate 7.68 per cent p.a.) for LVRs up to 70 per cent.
• Fixed rates are not available on asset‑based loans; the lender reserves the option to offer fixed‑rate conversions only on full‑doc products.

An annual fee of $395 applies to all asset‑based loans, and an establishment fee of $995 is charged on settlement. Loans above $1 million attract a risk‑pricing margin of 0.25 per cent, pushing the effective rate to 7.24 per cent p.a. for owner‑occupiers. No exit fee applies, but discharge settlement must be conducted through the lender’s panel solicitor, a condition that typically adds $600–$800 in legal costs compared with a standard discharge.

Interest‑only terms are available for a maximum of five years, and there is no requirement to revert to principal‑and‑interest until the interest‑only period expires. For borrowers using the asset‑based line to bridge a capital event, the flexibility is material: an investor holding a property for redevelopment can take a three‑year interest‑only term at 7.29 per cent and exit via a refinance when the site achieves development approval, avoiding the cashflow drain of principle repayments.

Comparison with Non‑Bank Peers

The pricing sits competitively within the specialised low‑doc market. Pepper Money’s “Self‑Employed Easy Doc” product advertises rates from 7.15 per cent p.a. for loans below 70 per cent LVR, but Pepper requires full BAS or accountant‑certified financial statements and applies a more traditional household expenditure benchmark. La Trobe Financial’s asset‑based product, “Self Employed Lite Doc,” opens at 7.50 per cent p.a. and imposes a higher 2.5 per cent establishment fee. Bluestone’s “No‑Doc Equity” loan, which requires only an asset‑backed statement, starts at 7.95 per cent p.a., according to Bluestone’s February 2025 product schedule. Resimac’s 6.99 per cent starting point and its $995 establishment fee therefore offer a tangible advantage for borrowers who can meet the exit‑strategy test but do not want the expense of Bluestone’s premium.

Strategic Considerations for Self‑Employed Borrowers

Using an asset‑based loan requires a deliberate approach to equity management and an honest assessment of refinance risk. The product is not intended as a permanent holding facility; Resimac’s documentation emphasises that the loan is a “transitional funding solution” and encourages brokers to structure a refinance path within 24–36 months. Self‑employed applicants should plan for the point at which they will be able to re‑qualify for a lower‑cost, full‑doc loan, perhaps once two full years of clean tax returns are available, or when a new business venture generates stable revenue.

A second strategic layer involves the rate‑pricing margin applied at higher LVRs. Borrowers who bring the LVR down to 60 per cent or below will often find that the effective interest rate falls close to the base variable rate, because the risk fee drops off. If the borrower holds excess equity in other properties, a combined security structure — where Resimac takes a charge over two properties but the LVR on each is kept at 55 per cent — can unlock the base pricing while leaving headroom for a separate equity release later.

A final consideration is the risk that the asset‑lend market tightens if property values slide. Resimac’s dynamic LVR overlay, which trims borrowing power in falling markets, means that a borrower who buys at the top of a cycle could see the lender’s asset‑based refinance appetite evaporate at the exact moment they need to exit. A prudent strategy involves modelling a scenario where the property value drops by 10 per cent and checking whether the residual equity still allows a refinance through a full‑doc lender or a secondary non‑bank.

Actionable Takeaways

1. Map the exit before applying. Have a documented exit strategy, signed by an accountant if possible, that shows how the loan will be repaid or refinanced within three to five years. Resimac’s credit team rates this document — a generic “sell one property” note will not impress.

2. Choose the documentation pathway that best fits your cashflow visibility. For contractors with lumpy income, the bank‑statement analysis may be more reliable than a BAS‑imputed figure that understates actual surplus. For established businesses with clean accounts, the accountant letter is fastest if the numbers align with previous tax returns.

3. Manage the LVR aggressively. Every 5‑percentage‑point drop below the maximum reduces the risk margin and avoids the dynamic overlay risk. If you have other unencumbered assets, consider bringing them into the security pool to push the LVR below 60 per cent and lock in the base rate.

4. Watch the postcode exclusion schedule. Before signing a contract of sale, check whether the property falls in a postcode that Resimac treats as high‑exposure or declining. This schedule is updated each quarter and can change quickly — a property that was acceptable in January might be capped at 50 per cent LVR in April.

5. Plan the refinance timeline from settlement date. As soon as the loan settles, begin tracking the date when two years of current‑year tax returns and a stable business history will be available. Engage a broker to monitor full‑doc rates at that point; a 100‑basis‑point drop on a $1.5 million loan saves $15,000 in annual interest, making the asset‑based premium worth a short‑term tolerance.