FinSecure offers new solution to help first home buyers

by Jayden Fennell 10 Mar 2022

Twelve months ago, Kristy Alam started FinSecure after realising first home buyers were struggling to buy property in a booming market.

With over 20 years’ experience in the finance industry and a focus on finding an alternative solution to mainstream lending and borrowing, Alam looked outside the box to help her clients.

Alam (pictured) created an initiative called FinFast which is specifically designed to assist first home buyers trying to purchase their first home. It allows buyers to be qualified and buy now with a maximum borrowing capacity up to $1,150,000 and 95% of the total purchase price plus maximum LVR of 98% (inclusive of LMI).

‘’There needs to be a solution for credit worthy clients who want to enter the market, ”Alam said. “There are great government initiatives including the first home loan deposit scheme, however, it can be difficult for first home buyers to secure their spot with only a small allocation of places available. Buyers are concerned if they are not eligible, they run the risk of potentially missing out on purchasing the property they want.’’

The First Home Loan Deposit Scheme was designed to assist first home buyers with purchasing their first home, however with only two major banks (CBA and NAB) approved as allocated guarantors of the scheme, they receive 50% of the allocation.

Due to the high popularity and significant interest in the scheme, NAB is currently not accepting any new requests to add customers to its waiting list. There are also strict criteria buyers must meet in order to be eligible for the scheme, let alone receive an allocated place including a small window to find and secure a property, demonstrate 5% genuine savings when borrowing and there’s a capped purchase price – in NSW the price is $800,000.

FinFast was designed for regional areas, as well as major cities, by providing a broader range for people to buy in,  which is helpful for NSW and Victorian clients who wish to purchase in high-priced areas.

Alam said brokers can benefit from the FinFast initiative as FinSecure works with a broad geographical range of brokers. However first home buyers must be aware that only accredited brokers with the organisation can offer the FinFast initiative as they do not have a retail channel.

‘’Our client is the broker so we want to focus on them. Brokers can become accredited with FinSecure which enables the broker to have a solution to help clients who might not qualify for the FHLDS.

“There is so much push with brokers being compliant and making sure they have a broad range of offerings. We directly credit the broker for deals directly with us. A benefit for the broker is we forward a lead onto an accredited broker, making sure the deal comes back through FinSecure,’’ she said.

FinFast also offer alternate products tailored to the investor where purchasers can lend up to 98% of the purchase price for their second or third property purchase.

Alam said her successful first 12 months in business was due to a strong reputation and quality service.

‘’Our conversion rate is 92% which is something I am really proud of. This is well above industry standard and is a testament to my team, our clients, and our customers. We take the extra steps to ensure brokers are dealing with the right people in our office who have credit experience.

“Communication is key to get the deal through to settlement. If you know you have a good team behind you, it makes a huge difference and make for an enjoyable experience purchasing property.”

The FinSecure team’s core focus is their customer-centric attitude which they value along with the longevity of a deal, working with clients and brokers to get the deal done.

Alam encouraged brokers across the country to contact her team to become accredited with FinSecure and offer this initiative to their clients.