Non-bank reduces investor loan rates

by Miklos Bolza01 Feb 2017
Non-bank lender Firstmac has announced new rate reductions for some of its investor loan products, going against the general industry trend of increasing investment rates.
The launch of the Investor Package offers the lender’s owner-occupier rate – which starts at 3.79% – to investor mortgages of customers who have both an owner-occupier and investment loan with the lender.
This eliminates the usual premium associated with investment loans across the industry, national sales manager Jake Sanders said.
“We want to have a great start to the year and work with brokers so they can have a great start too,” he told Australian Broker.
“We know we are going to lose some margin at the front end but we think we’ll make up for it through the long-term relationships we grow with brokers and with the new borrowers who are also bringing us their owner-occupied home loans.”
Firstmac typically charges a premium of 20 basis points on its investment loans.
For borrowers bundling an owner-occupied property with an investment property, the lender offers the following rates with no annual or ongoing fees:
Loan Type Rate
Vital 80 Owner Occupied Principal & Interest 3.79%
Vital 80 Investment Principal & Interest 3.79%
VIP (Offset) Owner Occupied Principal & Interest 3.89%
Vital 80 Investment Interest Only 3.99%
Vital 80 Owner Occupied Interest Only 3.99%
The decision to launch the Investor Package comes soon after the lender extended the expiration date of its two-week settlement guarantee from 31 December 2016 to 31 March 2017.
Sanders said that through the investor rate changes, its extended guarantee and its move towards online broker accreditation, Firstmac had taken the first steps to improving its products and services with more in the pipeline.
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