2.99% Fixed for a Year

[Qlds007]

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

Interesting product given the state of the fixed rate market.

 

[Nathan]

Nice,

read t/c's thought but on outside looks good.

 

[Strannik]

what's the exit fees if i decide to move away after first year?

 

[twhurl]

I seee 3.99 on the website

 

[ben73]

I seee 3.99 on the website

That's what I see too.. But is does say 2.99% here:
http://www.lendingcentral.com/2009/...o-australian-home-buyers-with-fightback-loan/

 

[Qlds007]

Was only launched yesterday evening so website hasnt yet been updated.

 

[ruroshin]

what's the exit fees if i decide to move away after first year?

Thats what I want to know too, 2.99% is about 2% lower than the big 4, on a 500K loan thats a 10K saving in one year. If the break fee after one year is a lot less than this it might be worth it.

 

[mja]

What would be the break costs after 1 year? Surely it'd be high... stop people signing up for the mortgage then moving to greener pastures after the low rate is over...

 

[sparky23]

Stop teasing me!

I am trying to persuade ING that they can do better than the stinky 5.94% lo doc rate they have me on at the moment. The story so far is that interest rates are not negotiable so I mentioned refinancing to the CBA where I pay 4.94% and apparently someone will be calling me back.

Has anyone won this battle with ING as I am not holding my breath!

 

[AshleyS]

Sparky, I am with ING too. They have said not negotiable on rates apart from the $499 offer to discount SV rates by 0.06%.

Let me know if you have any luck and then I will be on the phone to them!!!

 

[grossreal]

hi Qlds007
how do they lend under the bank bill rate I know that you can lend under the bank bill if a private but just wondering how a fund can fund about ,35 under the bill rate
might be a bit off topic put if you went to the launch they may have said
I would love it to be for commercial
also is there any flyer that I can get I did look at the site but I am one of these if I can't get it in 2 mins Im off the site and the mac site was all over the place for me
if its to get u in thats fine I just thought that you can go under the rba rate
or in effect you are undercutting the rba and they didn't like that type of action

 

[Aaron Sice]

how on earth can FirstMac afford 2.99%????? have they secured funds from Japan or something? to undercut the standard cash rate is truly unbelievable.

still, they get 2.99% off you for a $250k PI loan, say $10k pa, allow an offset account, say you had 25k in that, saves you 2.99% but they margin that money up to $250k and on-lend that in other (maybe commercial?) products for another rate busting 7% mortgage product and pull in 17.5k pa.

they pay the japanese govt 0.5% (just say - if they could secure first tier lending status - the IMF did) then they're only forking out $1200 - 1500pa for that interest bill.

your $10k repayments + $17.5k interest off your margined offset money makes $27.5k pa income, or $26k after their costs - pretty much exactly what you've got in your offset account.

i wonder how they would swing it?

 

[Spectre]

Info on the AOFM is here...


http://www.aofm.gov.au/

Ratewise - its almost like a giant hecs bill.

 

[bdc]

That site is terrible, very little information on it really.
Does anyone know the break fee's? Their "Re-draw Offset" is that just a redraw and like a couple of other lenders they are just tacking the offset word on it to make it sound better? Or is it just kinda like the CBA offset, one you need to manage yourself?

 

[Bradsdad]

"FightBack home loan lets you pay off your home faster and save on interest. By simply
depositing all your income from any source into your offset account you can reduce the
amount of interest payable on your home loan. You can then pay your regular bills and
living expenses with the VISA debit card which is attached."

It's a seperate off-set account.


In regards to DEF's it's 2% of loan amount in year 1, 1.5% years 2-3 and 1.2% in years 4 & 5. If you're after a variable rate then (as rates stand at present) I doubt you would want to leave anyway. However their fixed rates aren't attractive as it's not their target market. They don't even advertise their fixed rates.

All in all, for a 80% LVR (with genuine 5 % savings) you could do a lot worse.


Regards
Steve

 

[prandsa]

Check this out - 2.99% as well. I think it is through Mac too

http://www.opportune.net.au/about_news.asp?id=43

 

[Gee Cee]

Seems a few places advertising tiny % rates at present.

Just wondering if they have hefty fees right along the road travelled that in the end are close to everyone else. plus Huge exit fees.

 

[bdc]

It's a seperate off-set account.

Cheers, lol missed it staring me right in the face i guess ; D

In regards to DEF's it's 2% of loan amount in year 1, 1.5% years 2-3 and 1.2% in years 4 & 5. If you're after a variable rate then (as rates stand at present) I doubt you would want to leave anyway. However their fixed rates aren't attractive as it's not their target market. They don't even advertise their fixed rates.

I don't know what you are talking about here? Are you saying thats how FirstMac's loan structure is, as in thats what they will be paying on their loan? And why they can afford to have such cheap rates?

All in all, for a 80% LVR (with genuine 5 % savings) you could do a lot worse.

On the site it says FirstMac has been around for about 30years, but are always competitive? Essentially if they have been around for 30years one would assume they haven't been involved in dodgy lure the customers in then once you have them trapped raise those rates super high. If so, I would assume those in the industry would know anyway?


Just as a quick aside, I had a loans manager (ANZ) tell me that they won't lend more than 90% even if my parents put up equity in their house, is this actually the case, it was my understanding that if a family member was willing to guarantor the loan you can do pretty much whatever as they have equity in someones house?