businessOwned by: Firstmac
monetization_onFunded by: Firstmac
securityLMI Provider: Genworth & QBE LMI
account_balanceLender type: Online non-bank lender
Loans.com.au is an online-only lender that’s fully owned and funded by Firstmac. Firstmac is a privately owned non-bank lender that has been in operation for more than 30 years.
Their head office, loan specialists, credit team and the customer care team are all based out of Brisbane.
Due to not having a branch network and lower overheads, they offer sharp interest rates for new customers.
So, how do Loans.com.au compare with other lenders?
How do Loans.com.au’s home loans compare?
They’re great at
- Customer service
- Sharp interest rates if you have a large deposit
- An easy and simple approval process
- An online or over the phone applicaton
But they’ve got some drawbacks…
- Their rates are not competitive for loans over 80% of the property value
- No branch access
- Most loan product’s maximum loan amount is limited to $1 million
- High construction loan fees
- They’re strict with mature age borrowers who are within 15 years of retirement
- No bad credit home loans
- No low doc loans
- They don’t work with mortgage brokers
What home loan types do they have?
For owner-occupiers, they have a Smart Home Loan and Zip Home loan product for loans up to 80% LVR with a super low variable rate with no ongoing fees but the loan amount is limited to $1 million and $2 million respectively.
Their other three home loan product Offset, Fixed and Essentials can go up to 90% LVR with the max loan amount being $1 million (stricter lending criteria).
Their most popular investor loan product is their Smart loan package – Offset 80 which is a great low rate investment loan when it’s packaged with an owner-occupier loan. However, it’s limited to 80% LVR.
Their Essentials investor and Offset investor products are a streamlined home loan with a low variable rate.
How is loans.com.au’s construction loans?
Their construction loans for both owner-occupiers and investor features:
- Interest only during the construction stages.
- 5 stages/progress claims and progress valuations.
- You only pay interest on the amount drawn down.
Before applying for loans.com.au’s construction loan, ensure:
- The land purchase is finalised.
- A licensed master builder has been selected.
- Building plans are set and ready.
- A copy of the fixed HIA/MBA building contract is read.
Once the final stage of construction is completed, the loan rolls over to their variable rate home loan.
Note that the building contract needs to be a fixed price contract other building contract types such as ‘cost plus construction loan’ are not accepted.
Tips for applying with loans.com.au
- Constantly monitor your interest rate to ensure you’re getting the best rate and that rate cuts are being passed on to you in full.
- Unless everything about your situation is straight forward don’t bother applying with most online lenders.
We believe Firstmac is an ethical business; however, several online lenders in the past have offered low rates to new borrowers then put up the interest rates for older borrowers.
Compare loans.com.au to other lenders
Still not sure which is the right lender for you?
Talk to one of our specialist mortgage brokers at Home Loan Experts.
We’ll first discuss your situation, complete a pre-assessment and find a couple of suitable lender options for you.
Give us a call on 1300 889 743 or fill in our free online enquiry form.