Non-bank lender Firstmac has extended its groundbreaking two week settlement guarantee after achieving a 100 per cent success rate in its first three months of operation.
National Sales Manager Jake Sanders said that every borrower who met the criteria, since launching in October last year, had settled within the guarantee period and more importantly on or before the due date of settlement.
“When we launched this initiative there were skeptics who doubted that it would be possible to guarantee such a short settlement but we have proven them wrong,” Mr Sanders said.
“We have managed to remove the risk of delayed settlement which, in the current market, is one of the greatest worries that borrowers have when they buy a home and the feedback we are getting is fantastic.”
As a result of the success, the guarantee – which was due to expire on December 31 – has been extended to March 31.
“This guarantee was a response to brokers telling us that they want a faster turnaround from lenders with a set time frame to manage customer expectations,” Mr Sanders said.
“We have delivered that, allowing brokers to give their clients certainty around a very emotional purchase and eliminate the risk of potentially incurring thousands in penalty interest due to late settlement.”
Firstmac has been able to offer the guarantee, unlike other lenders, because of a systematic drive to speed up its approval process by eliminating unnecessary steps and making internal processes more efficient.
The guarantee is the latest breakthrough from Firstmac which has been streamlining its touch points with brokers to give them the industry’s most efficient service from accreditation through to application and settlement.
Firstmac recently launched an industry leading online accreditation system which allows brokers to request accreditation, do the necessary training and gain full access to Firstmac’s broker site with just 10 minutes of online work.
Using the new system and the guarantee a broker who has never dealt with Firstmac before can go from seeking accreditation to settling their first loan for a client in just two weeks.