FirstMac fights back with 3.99% fixed rate
By Agnes Gajewska
|
21 Nov 2008
Armed with the government's $500m RMBS investment and another $100m from institutional investors, FirstMac has taken the fight to major banks with the announcement of a 3.99% fixed rate "FightBack" loan.
The one year fixed rate product, which will revert to the lender's standard variable rate once the 12 months have passed , falls significantly below the current market leader, BankWest's 5.99% one year fixed rate loan.
FirstMac founder and managing director Kim Cannon said the "FightBack" product could potentially take years off customers' home loan repayments .
"Even with the loan rate reverting to the standard variable rate after one year, we still believe that borrowers will be way ahead financially compared to current comparable bank loans," he said.
He went on to say that the product was a direct result of the Federal Government's $8bn investment in RMBS, of which FirstMac was the first to receive a $500m issue.
He said non-bank lenders had taken "a bit of a battering from the big banks in recent times" and would now be able to retaliate.
"We believe this will also reinvigorate the lending and property market which is exactly what we need right now," he added.
Related stories:
First success for govn't RMBS initiative
FirstMac and Members Equity first to get RMBS boost
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