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One non-bank lender has reaffirmed its commitment to the investment property market, as some bank lenders continue to tighten their lending criteria for investment mortgages.
Firstmac announced a new investor package that cuts rates for investors who bring the lender both their home loan and investment loans.
It follows announcements by CBA, AMP Bank and Bankwest that they would not accept refinance applications from new customers.
Firstmac national sales manager Jake Sanders said the lender’s investor package has been well-received by property investors.
“We think that reflects value but also the fact that mortgage brokers and their clients are increasingly supporting Firstmac as a credible alternative to the banks,” Mr Sanders said.
“Brokers are telling us that their clients are concerned about what the banks are doing in the investment space and they are looking for legitimate alternatives from lenders who are committed to investment lending.”
Under Firstmac’s investor package, borrowers who bring both their owner-occupied and investor loans to Firstmac can get the owner-occupied rate for both loans, starting at 3.79 per cent.
The package eliminates the 20 basis point premium that is usually charged for investment loans.
“Brokers with investor clients should come to us because we have substantially lower rates and we still want their business,” Mr Sanders said.
“Our two-week settlement guarantee also applies to investment loans so a broker can come to us and get an investor loan rapidly settled at a great rate with full negative gearing benefits included in our serviceability calculations.”
Firstmac Limited is an independently-owned, Australian financial services provider with 38 years’ experience in home and investment loans.
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