Non-bank unveils two-week settlement guarantee

by Miklos Bolza14 Oct 2016
Non-bank lender Firstmac has announced its “fastest ever” settlement guarantee promising that broker clients can go from application to settlement in just two weeks.
“We’re trying everything we can in order to process loans as quickly as possible for brokers,” Jake Sanders, national sales manager of Firstmac, told Australian Broker.
This ambitious guarantee was developed after feedback that brokers wanted a faster turnaround from lenders to better manage customer expectations.
By working with brokers, Firstmac could meet the two-week deadline, Sanders said.
“We have a relentless focus on helping brokers to build their businesses and I think this guarantee is an important step in that direction.
“Using the guarantee, you can eliminate the risk that a client could incur thousands in penalty interest due to late settlement and also provide them with certainly around a very emotional purchase.”
To meet the shorter timeframe, Firstmac has developed an application checklist for brokers so the lender can receive a more comprehensive loan submission upfront.
“The broker sends us everything we need on that checklist, which should be able to go straight through to final approval within 24 to 48 hours,” Sanders said.
Through this streamlined process, Firstmac would eliminate what he called a “consistent irritant” for brokers – a lack of file ownership.
“Often brokers are frustrated because they feel like they’re dealing with multiple people on the one application. We’re trying to provide greater responsibility for the end-to-end process.”
With the lender offering two options under the settlement guarantee – either a 10 or a 15-day process – “it’s most likely that they will only ever deal with one person on a credit perspective on that file,” Sanders said.
The introduction of this new guarantee – which is valid until 31 December – comes as Firstmac drops its key interest rates by up to 0.30%. As such, the rate on the firm’s Vital 80 loan for owner occupiers is 3.79% and the rate for the Vital 80 for investors is 3.99%.