flagFounded: Around 1980
businessOwned by: Privately-owned
monetization_onFunded by: Retail deposits and wholesale capital markets
securityLMI Provider: Genworth, QBE LMI and Lender Risk Fee
Coronavirus / COVID-19: Firstmac home loan policy changes
In the uncertainty following the coronavirus pandemic, Firstmac has identified several industries to be high risk for lending. They include:
- Pubs, registered and licenced clubs (excluding bottle shops attached to these venues), hotels (excluding accommodation);
- Gyms and indoor sporting venues;
- Cinemas, entertainment venues, casinos, and nightclubs;
- Restaurants and cafes; and
- Travel and Hospitality.
In particular, Firstmac is not accepting borrowers on casual employment.
Moreover, income types such as commissions, overtime, and bonuses are being completely ignored when assessing your home loan application.
These policies are subject to change, so please get in touch with us for up to date information before applying for a home loan.
Firstmac is a privately-owned company that has been in business for 40 years.
They are one of Australia’s largest non-bank lenders and have provided 100,000 home loans and they currently manage $12 billion in mortgages and $250 million in cash investments. Their headquarters is in Brisbane, Australia.
Firstmac self-funds its operations through the release of highly-rated Residential Mortgage Backed Securities, historically a low-risk investment, and has issued more than $20 billion in RMBS bonds since 2003.
Their loans are offered through their online platform loans.com.au and they are also available through mortgage brokers. Their products are straightforward home loans and car loans for everyday Australians who are looking for an alternative to the major banks.
How do Firstmac’s home loans compare?
They’re great at
But they’ve got some drawbacks…
- Strict lending policy
- Interest rates and fees are not always competitive
- LMI can be expensive
- People with bad credit
- Not all mortgage brokers are accredited with them
- People who want branch access
- Borrowing over 90% of the property value is tough
- Self-employed borrowers who cannot prove their income
- First home buyers with a low deposit
What home loans types do they have?
Firstmac has a Vital, VIP Package and Construction loan which all come with competitive variable rates and different interest rates depending on if you are an investor or home owner, your repayment type and the size of your deposit.
For example if you borrow 80% of the property value you’ll get a better interest rate than if you borrow 90%.
The VIP Package also comes with fixed rate options however they are rarely market leading.
Tips for applying with Firstmac
Applying for a home loan with Firstmac works well if you meet standard bank criteria, you have a large deposit and you can provide all of your documents such as payslips in one go.
You may also need to find a mortgage broker that has worked with Firstmac before. Not all mortgage brokers are accredited with them or have experience working with them.
Use Firstmac’s Loan Checklist to prepare for your home loan application.
Firstmac’s majority shareholder Kim Cannon is one smart cookie! He’s not just been one of the true non-bank lenders that helped to force the banks to lower their interest rates in the late 90’s, he’s also helped the shape the mortgage industry.
When the internet was relatively new he was one of the first to see its potential and he registered the domain loans.com.au which has now become on online lender funded by Firstmac.
He’s also been instrumental in lobbying the government to reform laws restricting ownership for Authorised Deposit Taking Institutions (ADIs). Firstmac was unable to obtain an ADI licence in 2014 as Kim owns more than 15% of the company. We’d love to see more non-bank lenders become banks which would benefit all Australians as they could compete to offer other products like term deposits instead of being limited to home loans.
Kim regularly offers his opinion in the mortgage industry media which offers an independent and intelligent point of view. It’s always worth listening to what he has to say.
Firstmac client story: Lucas, NSW
- To buy a home and get a great interest rate.
Buying a home, negotiating a good interest rate.
Lucas had just sold a unit he owned in Sydney and was looking to buy a larger home for his new family. He was in an excellent financial position and was looking for the best deal on the market.
Despite being a great customer, several banks were unwilling to offer Lucas a substantial professional package interest rate because he was borrowing less than $500,000.
At the time, Firstmac had a special offer and was giving people who had a large deposit a market-leading interest rate even if they weren’t borrowing a large amount.
We were able to secure Lucas an approval at a rate well below the one offered by his bank.
In addition to this, we set the limit for the loan to be higher than was needed so Lucas had access to funds in case of emergency.
Compare Firstmac to other lenders
Not sure which lender is right for you? Our Home Loan Experts can help!
Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.