FirstMac today announced the launch of a 3.99 per cent introductory rate loan which it claims marks phase one of a “retaliatory strike against the big banks”.
Called the FightBack loan, FirstMac managing director and founder Kim Cannon said he believes the introductory fixed rate is currently the cheapest fixed rate loan on the Australian mortgage market.
“Even with the loan rate reverting to the standard variable rate after one year, we still believe that borrowers will be way ahead financially compared to current comparable bank products,” he said.
According to Mr Cannon, the product could inject a whole new round of competition into home loan lending.
“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.
The new product, said Mr Cannon, is a direct result of the Federal government’s $8 billion investment in RMBS. FirstMac successfully priced and placed a $600 million RMBS last week of which the government was a cornerstone investor.
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