A leading non-bank lender has extended its two-week settlement guarantee after achieving a 100 per cent success rate in its first three months of operation.
Firstmac national sales manager Jake Sanders says every borrower who met the criteria, since its launch last October, had settled within the guarantee period and on or before the due date of settlement.
“When we launched this initiative, there were sceptics who doubted that it would be possible to guarantee such a short settlement but we have proven them wrong,” Mr Sanders said.
“We have managed to remove the risk of delayed settlement which, in the current market, is one of the greatest worries that borrowers have when they buy a home, and the feedback we are getting is fantastic.”
As a result of the success, the guarantee – which was due to expire on December 31 – has been extended to March 31.
“This guarantee was a response to brokers telling us that they want a faster turnaround from lenders with a set time frame to manage customer expectations,” Mr Sanders said.
“We have delivered that, allowing brokers to give their clients certainty around a very emotional purchase and eliminate the risk of potentially incurring thousands in penalty interest due to late settlement.”
Firstmac said it has been able to offer the guarantee because of a systematic drive to speed up its approval process by eliminating unnecessary steps and making internal processes more efficient.
The group recently launched a new online accreditation system that allows brokers to request accreditation, do the necessary training and gain full access to Firstmac’s broker site in 10 minutes.
The new system follows Firstmac’s complete revamp of its corporate and broker websites, making them easier to use and navigate.
[Related: New online accreditation system launches]