Firstmac

[Bradsdad]

Anyone here have any feedback on Firstmac?

I must admit I never used to use them but have a couple of clients lately taking out their 4.74% broker special (comfortable not wanting over 80% now or in the future).
I've found then quite slow on the assessment side and a bit dim reading notes although the later could relate to quite a few lenders out there.

I was wondering if anyone had any feedback on their aftercare.

 

[Shahin_Afarin]

Conservative servicing, terrible cash out policy, terrible general policy, post settlement service has a long way to go. Not worth an extra 10 basis points discount due to the above.

 

[Bradsdad]

Many people still fit the "conservative" mold and don't have problems with their policies. I know that won't be many on here given it's an investment forum but I was talking more about clients not interested in anything else but a home loan under 80% with no intention of investing (yes there are people out there that haven't seen the light or able to).

I'm looking for feedback that may have been received from clients not generalisations. Maybe like myself most haven't used them but the lower rate (over 0.1%) will meet the needs of some and I feel bound to offer it no matter how much extra work it involves for me. I just am trying to ensure it's not a nightmare for clients say wanting to fix, get interim statements, change address,using their internet banking etc.

 

[Corey Batt]

Clients that I have picked up with existing Firstmac lending generally seem to be running a significantly higher rates than trend, so whether FM's rates deviant over time may be a consideration.

 

[Bradsdad]

Already considered and mentioned to clients but a valid point as it is i guess with any lender. I'd be more than happy rebating any switch fees if that happened in years 1-2 assuming it went above average market rates.

 

[Mick C]

A lot of my brokers has written a few Firstmac deal in the last 18 month + i have refinanced one of my dad's loan to firstmac so have first hand experience on their after settlement service.

Good rate for those who want a simple 80% LVR variable loan with an offset account and fee free;

- servicing is ok as it just uses the QBE servicing but yes a bit tight for self employed as there's a lot of add backs they don't accept..

- Cash out is bearable, but def not for the big investors with plenty of equity- but your everyday 2-3 property investor is doable if the investor is not willing to pay for LMI in the first place ( 80% LVR).
$100,000 under 80% = no evidence required
$100,000 + or over 80% then LMI policy kicks in

- Overall policy is alright, but if you have anything out of the box; ie security, active credit file, missed payments etc....even at 80% you may have issues as
they may insure the loan even at 80% ( Firstmac pays)

- Note they don't really have a fix rate product...just variable

- Multiple offset allowed and no fees



After settlement service

8/10 - a typical online provider.
They have this awesome " live chat" function which i quite like but i think a few lenders have this as well.

Pro
- Online site works fine
- Offset works like it should and clear states the "offset benefit"
- Can do an branch deposit via Westpac
- Allow for 3rd party to be added and to speak on the holders behalf ( Great for kids doing banking on the parents behalf if they can't speak fluent english - ie My parents)
- Great "tagging" software within the netbanking
- Staff were friendly and from Australia ( only had 2 interaction with them too date- Once to order a cheque book and the last time to add my name as a 3rd party to my parents account)
- Westpac staff knows what the Firstmac transfer is for and it went through no questions ask ( Pennant Hills westpac)


Con
- Poor mobile banking features
- Took over 10 days for a cheque book to be delivered
- ( Personal hate) To log in you have to use the mouse and "click the numbers on the online screen/pad" very annoying as it slows you down... but i think it's a safety feature...not sure.

----

Overall experience has been great from previous client that we have caught up with 6 month after settlement. Even had one loan split/ equity release last month and it went through fine.

 

[Bradsdad]

Thanks Michael, that's the sort of stuff i was after.

I'm not so worried about the front end stuff but the back end stuff from a clients point of view.