Firstmac

Firstmac: An Overview of a Leading Australian Non-Bank Lender

In the dynamic Australian financial market, Firstmac Limited (ABN 17 010 205 058) has established itself as a prominent non-bank lender with a history spanning over four decades. Founded in Brisbane, Queensland, in 1979, Firstmac remains a fully Australian-owned, privately held entity, with its ultimate parent being Firstmac Holdings Pty Ltd. This long-standing presence underscores its stability and deep understanding of the local market.

Firstmac's business model focuses on providing diverse lending solutions, primarily targeting owner-occupiers, property investors, and individuals seeking secured consumer finance for vehicles, often looking for alternatives to the major banks. The company has self-funded and managed substantial residential mortgage-backed securities (RMBS) issuances over the years, demonstrating its robust financial capabilities. Currently, Firstmac oversees an impressive A$16 billion in home and car loans, alongside A$300 million in cash investments.

Key leadership figures at Firstmac include Kim Cannon, the Managing Director and CEO, and Andrew Kemp, the Non-Executive Chairman. James Austin serves as the Chief Financial Officer, bringing over 20 years of tenure to the company's financial stewardship.

Firstmac's Comprehensive Lending Solutions and Specifics

Firstmac offers a range of financial products tailored to various borrower needs, distinguished by competitive rates and flexible terms that often rival those of traditional banks. Their primary offerings include home loans, car loans, and business and equipment finance.

Loan Products Offered

• Home Loans: This category is comprehensive, featuring variable and fixed-rate options, interest-only periods, construction loans, SMSF (Self-Managed Super Fund) loans, solar-linked home loans, and the innovative ZIP Home Loan product. These options cater to a wide spectrum of residential property finance requirements, from first-home buyers to seasoned investors.
• Car Loans: Firstmac provides secured finance for both new and used vehicles, available with variable and fixed interest rates. This product is designed to offer flexibility for personal vehicle acquisition.
• Business & Equipment Finance: For commercial clients, Firstmac extends asset and equipment financing solutions, supporting businesses in acquiring necessary operational assets.
• Retail Investments: Beyond lending, Firstmac also offers investment opportunities such as term deposits and managed investment products, including High Livez.

Loan Amounts, Interest Rates, and Terms

Firstmac's loan offerings come with specific parameters that potential borrowers should carefully consider:

• Home Loan Amounts: These typically range from A$50,000 up to more than A$2 million, accommodating a broad scope of property values.
• Car Loan Amounts: For car loans, the amounts vary from A$5,000 to A$150,000. It's important to note a maximum of A$50,000 applies to vehicles that are eight years old or more.
• Home Loan Interest Rates: Variable rates for home loans generally start from approximately 5.54% per annum (with a comparison rate of 5.58%), while fixed rates typically fall between 6.00% and 6.50% per annum.
• Car Loan Interest Rates: Variable car loan rates are generally in the range of 6.00% to 8.00% per annum, with fixed rates usually between 7.00% and 9.00% per annum. Borrowers should always check the most current rates as these can fluctuate.
• Home Loan Terms: Repayment terms for home loans can span from 1 to 30 years, offering both principal and interest or interest-only repayment structures.
• Car Loan Terms: Car loans typically have terms of 3 to 7 years, though older vehicles may be limited to a maximum term of 4 years. These are generally principal and interest repayment loans.

Fees Structure and Collateral

Borrowers must be aware of the fees associated with Firstmac's loans:

• Home Loan Fees: Common fees include a valuation fee of approximately A$221, legal fees around A$200, settlement fees of A$300, and discharge fees of A$300. Other fees may apply depending on the specific product.
• Car Loan Fees: Car loan applicants can expect an application fee of A$400-A$500, a monthly fee of A$8, and potential early exit fees (A$700 in years 1-2, A$500 in subsequent years excluding the final year). Default fees are A$150, and dishonour fees are A$35.
• Collateral Requirements: For home loans, a mortgage over the property is required, with Loan-to-Value Ratios (LVR) typically up to 80%, though higher LVRs may be possible with Lenders Mortgage Insurance. Car loans require a security interest over the vehicle, which must generally be no older than 15 years at the end of the loan term.

Potential borrowers are strongly advised to obtain a detailed breakdown of all fees and charges specific to their chosen product, as these can significantly impact the overall cost of the loan.

Navigating Firstmac: Application, Technology, and Regulatory Compliance

Understanding how to apply for a Firstmac loan, its digital presence, and its regulatory standing is crucial for prospective clients.

Application Process and Requirements

Firstmac provides multiple channels for loan applications:

• Digital Channels: Borrowers can apply online directly via Firstmac's responsive website and mobile web portal. The platform includes online calculators and a secure document upload facility.
• Broker Network: Firstmac also maintains an extensive network of accredited mortgage brokers across major Australian cities, offering an alternative channel for guided applications.

The application process involves standard Know Your Customer (KYC) requirements, including identity verification using documents like a passport, driver's licence, or birth certificate. Income documentation (payslips, tax returns) and, for home loans, property details (contract of sale) are also necessary. Firstmac employs an internal credit scoring system that combines credit bureau data with serviceability tests and LVR assessments. While standard applications may see automated decisioning, higher-risk cases are subject to manual review. Funds are typically disbursed via direct bank transfer to the borrower's nominated account.

Technology and Digital Presence

Firstmac maintains a strong online presence through its responsive website, which offers a user-friendly interface for online applications, calculators, and document submission. However, a key point of consideration for digitally-savvy users is the current absence of a dedicated mobile application listed in iOS or Android app stores. While the website is mobile-optimised, the lack of a standalone app might impact the user experience for those accustomed to native mobile banking features.

Regulatory Status and Compliance

Firstmac operates under stringent regulatory oversight in Australia. The company holds Australian Credit Licence (ACL) No. 389087, and its operations are regulated by the Australian Securities and Investments Commission (ASIC) under the National Consumer Credit Protection Act. Firstmac adheres to responsible lending obligations, the Privacy Act, and the Design and Distribution Obligations (DDO) regime.

It is important to note a recent regulatory action: in January 2025, the Federal Court ordered Firstmac to pay A$8 million for breaching its Design & Distribution Obligations in relation to the marketing of its High Livez product. This highlights the importance of regulatory compliance and the consequences of non-adherence. For consumer protection, Firstmac offers dispute resolution via the Australian Financial Complaints Authority (AFCA) and provides transparent Product Disclosure Statements (PDS) and Target Market Determinations (TMD).

Firstmac in the Market: Position, Performance, and Borrower Considerations

Firstmac holds a significant position within the Australian lending sector, particularly among non-bank institutions. Its market standing, financial performance, and customer feedback provide valuable insights for potential borrowers.

Market Position and Competition

Firstmac is recognised as the largest Australian non-bank mortgage lender, holding approximately a 5% share of the non-bank home loan market. Its key competitors include other established non-bank lenders such as Pepper Money, Liberty Financial, and Resimac, as well as the niche product offerings of major banks. Firstmac differentiates itself through flexible products often associated with banks, such as offset accounts and redraw facilities, and a unique specialised car loan redraw feature. Its consistent focus on self-funded RMBS issuances also sets it apart.

The company is actively targeting growth in green and solar-linked home loans, aligning with broader environmental sustainability trends, and is strengthening strategic partnerships with mortgage brokers to expand its reach. While alliances with third-party brokers are robust, direct bank partnerships are limited, though exploration of telco tie-ups for co-branding indicates a forward-looking strategy.

Customer Experience and Feedback

Customer reviews offer a mixed but generally positive perspective. On platforms like Trustpilot, Firstmac achieves a rating of 3.8/5, and on ProductReview.com.au, it holds 3.5/5. Many customers commend Firstmac for its competitive rates and the flexibility of its redraw facilities, which are often highly valued. However, common criticisms include slow customer service response times and a desire for an improved digital user experience, particularly concerning application processing times and responsiveness to service requests. The complexity of some PDS terms has also been mentioned.

Customer service is available via phone support during weekdays and email, complemented by dedicated broker liaison teams. Success stories often highlight first-home buyers benefiting from low-deposit options like the ZIP Home Loan and electric vehicle buyers taking advantage of green car loan discounts, showcasing Firstmac's ability to cater to specific market demands.

Financial Performance and Advice for Potential Borrowers

For the financial year 2025, Firstmac reported revenues of A$1.17 billion. As a privately held company, detailed profitability metrics are not publicly disclosed. The company's funding model is robust, relying on self-funded RMBS issuances totaling A$42 billion in Australian and global markets, with no external equity investors. Its loan portfolio of A$16 billion in active home and car loans is supported by a conservative LVR blend, indicating a focus on portfolio quality. Impaired assets are managed proactively, remaining below 1.5% of the portfolio, with arrears management and reserves aligned with APRA guidance for non-banks.

For potential borrowers considering Firstmac, several pieces of practical advice are pertinent:

• Compare Rates and Fees: While Firstmac offers competitive rates, it is crucial to thoroughly compare their interest rates and the detailed fee structure (application, monthly, discharge, early exit, etc.) against other non-bank lenders and traditional banks.
• Understand the Digital Experience: Be aware that while the website is functional for applications, there is no dedicated mobile app. If a native app experience is a priority for managing your loan, consider this aspect.
• Review Customer Service Feedback: If responsiveness and quick service turnaround are critical to you, weigh the reported experiences of other customers regarding processing times and direct service interactions.
• Scrutinise Loan Terms: Carefully read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) to fully understand all terms, conditions, and any potential complexities, especially regarding interest-only options, redraw facilities, and early exit clauses.
• Consider Broker Assistance: For complex situations or if you prefer guided assistance, utilising Firstmac's accredited mortgage broker network could be beneficial in navigating the application process and product selection.
• Assess Collateral Requirements: Ensure you meet the specific LVR requirements for home loans or vehicle age limits for car loans to avoid potential delays or rejections.

Firstmac represents a compelling option for Australian borrowers seeking flexible and often competitively priced lending solutions outside the major banking institutions. Its long history, diverse product range, and commitment to the non-bank sector make it a significant player worth considering, provided borrowers conduct their due diligence on the specific product terms and fees.