Forums / Getting Technical / Finance / 2.99% How thats for a fixed rate loan.

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  • Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    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.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    mattnz
    Participant
    @mattnz
    Join Date: 2007
    Post Count: 574

    Who is offering this product Richard?

    Profile photo of carlincarlin
    Participant
    @carlin
    Join Date: 2005
    Post 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?

    Carlin

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Matt

    Lender is FirstMac.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of god_of_moneygod_of_money
    Participant
    @god_of_money
    Join Date: 2008
    Post Count: 971

    Richard,

    Non-bank lenders have taught us a lot throughout the great financial crisis…

    Today, it is 2.99%.. next year… 10%

    Profile photo of PaulliePaullie
    Member
    @paullie
    Join Date: 2009
    Post Count: 217

    Exactly, they are just applying lube for the rapage next year.

    Profile photo of karen.karen.
    Member
    @karen.
    Join Date: 2009
    Post Count: 196
    Paullie wrote:
    Exactly, they are just applying lube for the rapage next year.

    LOL

    Profile photo of the7the7
    Member
    @the7
    Join Date: 2009
    Post 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?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Lodged 4 applications to date i have set out some of the T & C's above.

    What

    else

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of the7the7
    Member
    @the7
    Join Date: 2009
    Post Count: 10

    break costs would be the main point of interest.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    the 7

    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. 

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of carlincarlin
    Participant
    @carlin
    Join Date: 2005
    Post 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.

    cheers,
    Carlin

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    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.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Peter_TPeter_T
    Member
    @peter_t
    Join Date: 2009
    Post 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.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    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.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

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