With the Reserve Bank (RBA) having lifted the cash rate four times in 2026, Brisbane-based non-bank lender Firstmac is pitching a competitively priced alternative documentation (alt-doc) home loan at self-employed borrowers who have been paying a premium for non-standard income verification.
The loan is open to business owners who have traded for at least two years and hold a clean credit record. They can prove their income with six months of lodged Australian Taxation Office (ATO) Business Activity Statements (BAS).
Rates start from 6.99% for an owner-occupied principal and interest loan at a 70% loan-to-value ratio (LVR), with a low application fee and no ongoing monthly fees.
Both owner-occupiers and investors can apply. Borrowers can choose variable or fixed rates, principal and interest or interest-only repayments, and an optional offset account.
The alt-doc loans will be funded through Firstmac’s Eagle residential mortgage-backed securities (RMBS) program, separate from its Benchmark prime RMBS program, as the lender maintains its conservative credit approach.
Firstmac chief commercial officer Marie Mortimer (pictured) said high-quality self-employed clients often pay rates that do not reflect their credit quality.
“These customers can find themselves paying substantially higher interest rates,” Mortimer said.
She said the lender was not trying to compete across the whole alt-doc segment.
“We’re specifically targeting the premium end, where borrowers have strong credit credentials but don’t quite meet traditional documentation requirements,” Mortimer said.
The RBA’s most recent increase took the cash rate to 4.6% on 29 September. For brokers, the launch offers a way to keep self-employed clients within Firstmac’s range rather than moving them to a higher-priced loan.
“For brokers, it’s about having another competitive option for a good customer,” Mortimer said.
The move comes as lenders report alt-doc lending is shifting into the mainstream, with tighter bank serviceability rules pushing more self-employed borrowers towards non-banks.
The launch follows Firstmac’s move to extend its bridging loan sale window to 12 months. It also forms part of a wider round of product enhancements across construction, vacant land, and car finance. The lender, which manages $23 billion in residential mortgages, has also ramped up its technology spend to speed up broker turnaround times.
Get the hottest and freshest property and mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
