FirstMac continues to fight back with a knock out 2.99% home loan!
To help support our accredited brokers to better position themselves to compete in this changing marketplace, and to provide a real competitive alternative and extra choice for borrowers, FirstMac is pleased to announce a 2.99% FightBack premium fixed home loan — a sharp interest rate below the official cash rate!
Last Friday FirstMac was chosen by the AOFM in the second selection round for the allocation of RMBS mandates. This is the second allocation of funds for investment in FirstMac issued RMBS and enables us to provide Australians a fair-priced home loan rate to “FightBack”.
A borrower would be better off with the FirstMac “FightBack” 2.99% loan for the first 8 years when compared with the average 4 major banks’ discounted professional pack rate of 5.10% pa.
In addition, our 4.89% FightBack premium variable home loan provides a competitive and quality alternative to the standard variable home loans of most major banks…
FightBack is a fully featured home loan designed to appeal to home buyers and property investors. It’s also ideal for borrowers wishing to refinance an existing property.
A snapshot of features includes…
FightBack premium fixed
· 2.99% pa 12 month introductory fixed rate (reverting to standard variable)
· FullDoc only
· P&I only
· Max LVR 80%
· Max loan $750K
· 100% redraw offset account available
· Borrowers pay as much as they like into the offset account during the fixed rate period
· Unlimited redraws at no cost
· Fully transactional with Visa debit card
· No ongoing monthly or annual fees
Already had a few enquiries from client this evening on this product and I am sure it is going to be a winner all round.mattnzParticipant@mattnzJoin Date: 2007Post Count: 574
Who is offering this product Richard?carlinParticipant@carlinJoin Date: 2005Post Count: 211
From their website –
3.99% 1 year fixed rate. (Reverting to standard variable rollover rate. Comparison rate 5.60%.
Doesn't sound that great.
Am I missing something?
Carlingod_of_moneyParticipant@god_of_moneyJoin Date: 2008Post Count: 970
Non-bank lenders have taught us a lot throughout the great financial crisis…
Today, it is 2.99%.. next year… 10%PaullieMember@paullieJoin Date: 2009Post Count: 217
Exactly, they are just applying lube for the rapage next year.karen.Member@karen.Join Date: 2009Post Count: 196Paullie wrote:Exactly, they are just applying lube for the rapage next year.
LOLthe7Member@the7Join Date: 2009Post Count: 10
Friends of mine are considering this loan, I couldn't see any terms and conditions on their website. has anyone looked into it further?
Lodged 4 applications to date i have set out some of the T & C's above.
elsethe7Member@the7Join Date: 2009Post Count: 10
break costs would be the main point of interest.
It is not too bad 2% Yr 1 / 1.5% Yr 2 & 3 / 1.2% Yr 4 & 5.
But when you consider that you can pay as much as you like into the loan in the first year and after year 1 it reverts to the variable rate currently 5.64% with no monthly or annual fees not a bad product at all.carlinParticipant@carlinJoin Date: 2005Post Count: 211
Firstmac's offer appeals if you have lots of $$$ to dump on the loan in that first year.
We don't, so Bankwest's Rate Tracker Ultra home loan product appeals more.
0.9% off the variable rate for three years, using an average of the big four banks variable rates to set the variable rate they deduct from. Currently 4.85% (real rate for $250,000 is 5.4%)
No ongoing fees – just an establishment fee of $595.
No exit costs.
Can be interest-only.
Reverting to Lite Home Loan product (also no monthly fees) after the three years.
It's the best introductory offer I've found.
The First Mac Fightback variable rate has a CAR of 4.89% no ongoing monthly or annual fees.
Applic Fee at $256.25 val & legals at cost.
Not recommending it but putting it up as another comparison.Peter_TMember@peter_tJoin Date: 2009Post Count: 3
This is a great loan in the first year, but as stated it's a dog after 12 months. It essentially goes to 5.64. You save a lot of money in the first year, but pay it back over the next few years. The deferred establishment fees also make sure its uneconomical to move to another lender after the 12 month introductory period.
You can save money on this loan if you make lots of extra repayments in the first year, but for investors that might defeat the purpose of an interest only loan to maximize cashflow.
Peter it is not aimed at the investor market but merely at the FHB who individual who has limited serviceability for a number of reasons and is looking at creating equity through repayments.