Firstmac offers home loans through its network of brokers to owner-occupiers, investors, refinancers, self managed super funds (SMSF), and those building a home.
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The nitty-gritty on Firstmac home loans
The lender provides both variable and fixed rate home loans with numerous handy features and a maximum loan-to-value ratio (LVR) of 90%.
ZIP Home Loan
Firstmac’s ZIP Home Loan offers a competitive interest rate. It also comes with an interest- and fee-free Visa debit card with a $5,000 limit that can function as a line of credit.
The loan boasts no monthly or ongoing fees and the option to make unlimited extra repayments.
Green home loan
Homes with a NatHERS certificate and a minimum star rating of 7.0 could be eligible for a ‘green’ home loan through Firstmac. Only homes built within the last 12 months can qualify. A home’s builder can generally help to ensure it is certified.
Homes certified as ‘green’ generally use less energy for heating and cooling.
Firstmac’s green home loan offers a discount on its variable interest rate for the first five years of its life. Those constructing their house, buying, or refinancing a house that have been built for less than a year could be eligible for the product.
Construction and SMSF home loans
Firstmac also provides loans for those building a new home (construction loans) or SMSF loans (loans taken out on behalf of a person’s self managed superannuation fund).
A construction loan lets a borrower draw down on their facility as they build their home, only paying interest until the build is complete.
The lender also offers a residential SMSF home loan, allowing a house to be purchased as part of a person’s superannuation strategy. Its SMSF home loans come with fixed or variable interest rates, charge no annual or ongoing fees, and are only available to funds buying a single, existing dwelling.
Firstmac will lend a maximum of $1.5 million to a SMSF and demands a loan-to-value ratio of at most, 80%, meaning borrowers need at least 20% equity or deposit.
What is a Firstmac sub-offset account?
As a non-bank lender, Firstmac doesn’t provide an offset account like you might find at a bank. That’s because only authorised deposit-taking institutions can house a borrower’s spare cash in an offset account.
In a typical offset account from a bank, the value of the cash within it is offset against the value of the loan, reducing the interest payable. Firstmac’s sub-offset account, available on its variable rate home loans, acts similarly. It provides a borrower with a debit card attached to their home loan. By using the card, a borrower can draw down on the value of any extra repayments they’ve made over the years.
A bank’s offset account can be accessed just like a transaction account, and is housed separately to the loan. However, Firstmac’s card isn’t attached to a separate account, like that of a typical offset account, and is housed within the loan. The balance is not allowed to be greater than the value of the home loan.
The money accessible via Firstmac’s debit card also isn’t covered by the Australian Government’s Financial Claims Scheme, like that kept in a traditional offset account would be. However you can transact on the debit card as normal, like an offset account from a bank.
