Non-bank Firstmac has significantly overhauled its owner-occupied-and-investor package.
The revamp includes cutting the cost of loans when combined compared to purchasing each loan separately. This initiative is aimed at making the borrowing experience more appealing by offering discounts on both owner-occupied and investment property loans.
The decision follows Firstmac’s analysis revealing that since 2010, the default rate on its investment property loans has been on par with that of owner-occupied loans. This insight challenges longstanding beliefs regarding the comparative risk of investment loans.
Jake Sanders (pictured above), head of third-party sales at Firstmac, highlighted the reduced premium on investment loans through this package.
The non-cross-collateralised loans start at rates of 6.28% for owner-occupied and 6.68% for Investment loans.
“We believe that having all facilities with a single lender provides simplicity and easy access for the customer, so we are offering a highly competitive package to encourage that,” Sanders said.
The package boasts extensive features such as free unlimited redraws, no annual or ongoing fees, optional offset sub-accounts, and comprehensive online services including the Firstmac Money app, Apple & Google Pay, and Visa debit cards.
“Clients taking this package will not be disadvantaged on functionality, access, or features,” Sanders said. “Paying a much higher interest rate for an investment property loan is a genuine frustration for borrowers so we think this package is going to get a lot of attention from brokers and their investment clients.”
Sanders said the competitive package is designed not only to alleviate the frustration associated with higher investment loan rates but also to cater to the needs of brokers and their clients seeking investment financing.
Firstmac’s robust borrowing capacity, is expected to empower more people to achieve their financial goals under competitive interest rates.
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