Non-bank lender FirstMac has unveiled one of the cheapest introductory loans currently available in Australia in a bid to take on the Big Four's expanding market share.
Dubbed the 'FightBack' loan, it carries a fixed rate of just 3.99% for one year, and after this intro period, it reverts to the lender's standard variable loan.
FirstMac founder and managing director Kim Cannon said he believes the product is currently the cheapest fixed-rate loan in the Australian mortgage market.
"The new product is a direct result of the Federal Government's $8bn investment in the Residential Mortgage Back Security market," he said.
The loan comes with a 100% offset account, which helps customers pay off their mortgage fast by keeping all their funds in the offset facility.
"Even with the loan rate reverting to the standard variable after one year, we still believe that the borrowers will be way ahead financially compared to comparable current bank loans," said Cannon.
He noted that non-bank lenders have taken a bit of a battering from the big banks in recent times. "Now it's our turn to 'fight back' and this is what we're doing with the FightBack loan," he said. "We believe this will invigorate the lending and property market - which is exactly what we need right now."
Cannon pointed out that it was important that non-bank lenders showed they could be more competitive than ever with the banks, as well as innovative with the products they offered.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan