Non-bank lender Firstmac has cut rates across its fixed and variable home loan ranges, with its five-year fixed rate copping the largest reduction as the lender steps up competition with the major banks.
The cuts scale up the longer the fixed term. Two-year fixed rates have been trimmed by 15 basis points, three-year rates by 25 basis points, and four-year rates by 30 basis points. The five-year fixed rate has taken the deepest cut, down 40 basis points to 6.99% p.a. for owner-occupiers and 7.19% p.a. for investors. One-year fixed rates are unchanged.
Following the reductions, Firstmac's principal-and-interest fixed rates for owner-occupiers now sit at 6.74% p.a. for two- and three-year terms, and 6.99% p.a. for four- and five-year terms.
Firstmac has also cut all new business variable rates by 10 basis points across its Simple, Standard, and Construction home loan ranges. The move comes as non-bank lenders are increasingly filling gaps left by banks for borrowers with complex income profiles, including the self-employed and small-business owners.
Firstmac chief executive officer Marie Mortimer (pictured) said the appeal of the five-year fixed loan extends beyond the lower rate itself, pointing to the lender's serviceability policy as a key advantage for brokers working with borrowing-constrained clients.
"This is about more than offering a lower fixed rate," Mortimer said.
She said Firstmac's approach to assessing borrowing capacity was designed with affordability pressures in mind.
"Buying a home is already challenging, and unrealistic serviceability can further limit what customers are able to borrow," Mortimer said.
She added that the five-year fixed product gives brokers a practical tool when clients are seeking rate certainty without an overly restrictive borrowing cap.
"Our five-year fixed loan gives brokers another practical option, while giving customers certainty over their rate and repayments," Mortimer said.
Mortimer said the broader rate cuts were designed to support brokers regardless of whether a client favours certainty or flexibility.
"Some customers value the certainty of a fixed rate, while others prefer the flexibility of a variable loan," she said. "These changes give brokers stronger options for both."
Firstmac has written more than 210,000 home loans since it was founded 47 years ago, and currently manages $22 billion in residential mortgages.
Get the hottest and freshest property and mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
