A strong home loan is about more than a competitive interest rate. You also need flexible repayments, transparent fees, suitable loan features, and lending criteria that match your circumstances.
This firstmac home loan review examines Firstmac’s home loan options, interest rate considerations, fees, offset arrangements, eligibility requirements, government scheme participation, and customer experience. It also compares Firstmac with other Australian lenders to help you decide whether its products suit your borrowing needs.
| Key Takeaways | Summary |
| Lender type | Firstmac is an Australian non-bank lender, rather than a traditional deposit-taking bank. |
| Main strengths | It offers home lending options for different borrower needs, including eligible owner-occupiers and property investors. |
| Interest rates | Your rate depends on the product, loan-to-value ratio (LVR), repayment type, and other lending criteria. |
| Loan features | Check the availability and terms of offset sub-accounts, redraw facilities, and additional repayments for your specific product. |
| Green lending | Investigate the Green Home Loan’s eligible property requirements, including any applicable NatHERS rating conditions. |
| Government protection | Firstmac’s non-bank status matters when assessing deposit protection and the structure of any offset arrangement. |
| Potential limitations | Product eligibility, fees, available features, and servicing policies may differ from major bank offerings. |
| Best suited to | Borrowers who value a broader lender comparison and find that Firstmac’s products match their financial circumstances. |
Firstmac Home Loan Review: Overview And Verdict
Firstmac is worth comparing if you want a non-bank lender with variable, fixed, construction, and investment lending options. Its variable products can include a 100% offset sub-account, while fixed loans provide repayment certainty. However, you should check the precise product conditions before choosing.
Firstmac is not a traditional bank. It operates under an Australian credit licence and offers lending products through broker channels. Its lending policies, fees, and assessment criteria can differ from those of major banks.
The key consideration is whether Firstmac offers the right combination of pricing, flexibility, and borrowing capacity for your circumstances. A low advertised rate alone does not establish that a loan represents good value.
Firstmac Home Loans At A Glance
| Feature | What You Need To Know |
| Lender type | Australian non-bank lender |
| Loan purposes | Owner-occupied and investment properties, subject to eligibility |
| Interest rate options | Variable and fixed |
| Specialist products | Construction, interest-only, and eligible self-managed super fund (SMSF) lending |
| Offset facility | A 100% offset sub-account is available with eligible variable products |
| Redraw facility | Available on eligible variable loans; fixed loans have different restrictions |
| Government deposit guarantee | The offset sub-account is not covered by the Financial Claims Scheme |
| Application channel | Confirm the current application process and product availability with an accredited broker |
| Overall verdict | Worth comparing, particularly when its lending policy and features suit your needs |
Firstmac’s official product information confirms its variable, fixed, and construction loan options. It also explains the conditions applying to its offset sub-account.
What Home Loans Does Firstmac Offer?
Firstmac offers several lending options designed for different property purchases and financial circumstances. However, not every feature is available across every product.
Variable Rate Home Loans
A variable rate can change during your loan term. Consequently, your repayments or the amount of interest you pay may change when your lender adjusts the rate.
Firstmac’s variable products can offer useful flexibility, including eligible offset arrangements and redraw access. These features can help borrowers manage savings and make additional repayments.
Before applying, compare the basic and feature-rich products. An offset facility may be valuable if you maintain substantial savings, but unnecessary if you rarely hold spare cash.
Fixed Rate Home Loans
A fixed rate provides greater certainty over your interest rate during the agreed fixed period. Firstmac offers fixed options for selected terms, subject to current product availability.
However, fixed loans may restrict extra repayments and access to additional funds. You should also examine break costs if you might sell your property or refinance before the fixed period ends.
Construction Home Loans
Firstmac’s construction loans can finance a new build, major renovation, or demolition and rebuild. The lender releases funds progressively as construction reaches agreed stages.
This structure means you generally pay interest on the amount drawn during construction, rather than the entire approved limit. However, your repayment arrangements can change as further funds are released.
Before signing a building contract, confirm the lender’s requirements for builder approval, progress inspections, construction timelines, and variations.
Investment And SMSF Home Loans
Firstmac also provides investment lending and eligible SMSF loan products. These may suit borrowers purchasing rental properties or refinancing property held through a self-managed super fund.
SMSF borrowing involves additional legal and lending requirements. Your fund must comply with superannuation law, and the loan structure must satisfy applicable borrowing rules.
For residential SMSF refinance, confirm the eligible security, repayment type, loan purpose, and ownership structure. Do not assume that ordinary investment loan rules apply to an SMSF loan.
Green Home Loan
Firstmac has offered a Green Home Loan for eligible energy-efficient properties. This product may appeal to buyers who want to align their financing with a home’s energy performance.
However, you should verify the current eligibility rules before relying on this option. NatHERS ratings, eligible property types, documentation requirements, and available discounts can affect qualification.
A NatHERS rating assesses a home’s thermal performance. It is not the same as a general energy-efficiency claim made by a builder or property agent.
Ask whether Firstmac requires a particular NatHERS star rating, which certificate it accepts, and whether the rating must cover the whole home. Also confirm whether existing homes and new builds qualify equally.
Firstmac Home Loan Interest Rates
Firstmac’s pricing depends on the product and your application. Factors can include your LVR, occupancy, repayment type, loan amount, and financial profile.
Therefore, you should compare a personalised offer rather than relying on one advertised rate.
What Determines Your Rate?
- Loan-to-value ratio: A lower LVR may qualify for different pricing because the lender faces less risk relative to the property’s value.
- Property purpose: Owner-occupier and investment loans can have different pricing and eligibility rules.
- Repayment structure: Principal-and-interest loans may have different rates from interest-only loans.
- Rate type: Variable and fixed products serve different needs, so compare each with equivalent alternatives.
- Product features: A loan with an offset facility may be priced differently from a simpler product.
Why The Comparison Rate Matters
The comparison rate combines the interest rate with certain fees and charges into a single annual percentage. It helps you assess the potential cost of comparable loans.
However, the comparison rate uses a standardised example and may not reflect your actual costs. It also may not capture every expense relevant to your circumstances.
Compare loans using the same loan amount, term, repayment type, and LVR. Then check establishment fees, ongoing charges, offset costs, and restrictions separately.
Firstmac Home Loan Fees And Charges
A suitable loan should offer competitive overall costs, not simply an attractive interest rate.
Firstmac’s charges can vary by product and application. Obtain the current fee schedule and written loan proposal before proceeding.
| Cost | What To Check |
| Application and establishment fees | Confirm whether the selected product charges an upfront fee. |
| Valuation fees | Check whether property valuation costs apply and whether multiple valuations could be required. |
| Legal and settlement costs | Ask which lender-related legal or settlement charges apply. |
| Ongoing fees | Confirm any recurring account or package charges. |
| Discharge fees | Check the costs of closing the loan when selling or refinancing. |
| Risk fees | Establish whether an LMI risk fee or another lender risk charge applies to your LVR. |
| Fixed-rate break costs | Ask how the lender calculates costs if you exit during the fixed period. |
Understanding The LMI Risk Fee
Some eligible Firstmac loans may use a lender risk fee instead of conventional lenders mortgage insurance (LMI). This is not automatic and depends on the lender’s policy.
Firstmac’s residential lending policy describes risk fees for certain higher-LVR loans. Eligibility depends on factors such as the LVR, loan amount, security location, repayment type, and borrower circumstances.
For example, a property worth $800,000 with a $720,000 loan has a 90% LVR before any capitalised fee. That does not establish eligibility for Firstmac’s risk-fee option.
Ask for a written breakdown of the applicable fee and any exclusions. A risk fee can be substantial, and capitalising it increases the amount you owe.
Home Loan Features And Benefits
Firstmac’s features may make a practical difference to your borrowing costs. Their value depends on how you manage your money.
100% Offset Sub-Account
Firstmac offers an offset sub-account with eligible variable products. Money held in the sub-account can reduce the balance used to calculate interest on the linked loan.
For example, suppose you owe $600,000 and hold $40,000 in an eligible offset sub-account. If the full amount qualifies for offset, interest is calculated on an effective balance of $560,000.
Your loan principal does not automatically fall by $40,000. Instead, the offset reduces the balance used for interest calculations while the funds remain available under the account’s terms.
Important government guarantee distinction: Firstmac explains that its offset is a sub-account of the loan, not a separate deposit account. It is not covered by the Australian Government’s Financial Claims Scheme (FCS).
The FCS generally protects eligible Australian-dollar deposits held with participating authorised deposit-taking institutions, up to $250,000 per account holder per institution. Firstmac’s offset sub-account does not receive that protection merely because it is called an offset.
This differs from an eligible offset account held as a separate deposit account with a covered bank. If deposit protection matters to you, compare the legal structure, not just the word “offset”.
Redraw Facility
Redraw lets you access eligible extra repayments you’ve made on a loan. Firstmac confirms that redraw is available on eligible variable loans, while fixed loans do not offer the same redraw access.
Redraw and offset are not identical. Extra repayments through redraw reduce your loan balance, while offset savings remain in a separate linked sub-account within Firstmac’s arrangement.
Check any withdrawal conditions, fees, minimum redraw amounts, and processing times. You should also consider whether your preferred loan gives you reliable access to funds when needed.
Extra Repayments And Repayment Choices
Additional repayments can help reduce the balance on which interest accrues. Nevertheless, fixed loans may impose limits, so confirm the rules before paying extra.
Firstmac also offers different repayment structures across selected products. Principal-and-interest repayments reduce the debt over time, while interest-only repayments generally leave the principal unchanged during the interest-only period.
Interest-only lending can increase future repayments when principal repayments begin. Compare the long-term cost rather than judging affordability solely by the initial repayment.
Firstmac Home Loan Eligibility Requirements
Firstmac assesses your ability to repay the loan, your financial position, and the property offered as security. Meeting a published maximum LVR does not guarantee approval.
Your application will generally need to demonstrate the following:
- Stable, verifiable income: Firstmac needs evidence that you can afford repayments after accounting for your regular expenses and existing debts.
- Acceptable credit history: Your repayment record and outstanding liabilities can affect approval and pricing.
- Suitable property security: The property must satisfy Firstmac’s valuation, location, and security requirements.
- A suitable deposit or equity position: Your available funds influence your LVR and any applicable risk fees.
- Appropriate documentation: Employees, contractors, and self-employed applicants may need different income evidence.
Firstmac’s broker information lists policies covering overtime, bonuses, commission, probation, and certain self-employed applicants. However, these options carry conditions and do not guarantee acceptance.
Can Casual Employees Apply?
Casual employment does not automatically prevent you from obtaining a Firstmac loan. However, the lender must be satisfied that your income is reliable enough to support repayments.
You may need payslips, bank statements, employment records, and evidence of your work history. If your hours fluctuate, the lender may assess your average earnings rather than your best recent pay period.
Ask how Firstmac treats overtime, penalty rates, casual loading, and gaps between contracts. Another lender may suit you better if it recognises more of your variable income.
Can Self-Employed Borrowers Apply?
Firstmac lists self-employed lending policies among its broker offerings. Your options depend on your business structure, income evidence, and the selected product.
You may need tax returns, financial statements, business activity statements, or alternative documentation where accepted. Reduced-documentation options are not the same as approval without income verification.
Before applying, ask which documents Firstmac requires for your circumstances. Also confirm how it calculates business income and treats unusual expenses.
How Much Can You Borrow With Firstmac?
Your maximum borrowing capacity depends on income, expenses, debts, dependants, the deposit, and lender assessment rules.
Firstmac’s broker materials describe policies that may increase borrowing capacity for some applicants. Nevertheless, no single income multiple accurately predicts the amount every borrower can obtain.
Consider a property purchase worth $800,000. A 20% deposit equals $160,000, leaving a proposed loan of $640,000 before buying costs.
At a 10% deposit, the proposed loan would be $720,000 before costs. That increases the LVR from 80% to 90%, potentially changing the available products and risk-fee requirements.
These figures illustrate deposit arithmetic, not a Firstmac approval or borrowing-capacity estimate. Your income and expenses must still support the proposed repayments.
Remember to budget for stamp duty where applicable, conveyancing, inspections, moving expenses, and an emergency reserve. Your state or territory may offer concessions depending on your eligibility and property.
Which Government Schemes Does Firstmac Participate In?
Firstmac is not currently listed as a participating lender for either the Australian Government 5% Deposit Scheme or the Australian Government Help to Buy Scheme. Do not assume a Firstmac home loan can be used with either scheme. Check the relevant official participating-lender list before applying, as participation can change.firsthomebuyers+1
Australian Government 5% Deposit Scheme
The scheme helps eligible buyers purchase an eligible home with a smaller deposit and without paying lenders mortgage insurance (LMI). The Australian Government provides a guarantee to the lender, but the borrower remains responsible for repayments and other purchasing costs.
Firstmac does not appear on the scheme’s current official participating-lender list. If you intend to use the scheme, compare participating lenders’ rates, fees, loan features and lending requirements. Scheme eligibility does not guarantee loan approval; the participating lender must assess your circumstances.
Australian Government Help to Buy Scheme
Help to Buy is a separate shared-equity scheme. The government contributes towards an eligible property purchase in exchange for an equity share, subject to the scheme’s requirements.
Firstmac does not appear on the current official Help to Buy participating-lender list. Applications must go through an authorised participating lender, which assesses eligibility and lending requirements and confirms whether a scheme place is available.
State and Territory Grants and Duty Concessions
First Home Owner Grants and stamp duty concessions are separate from these federal schemes. They have their own eligibility and application rules, so Firstmac’s absence from the federal participating-lender lists does not, by itself, determine whether a borrower can receive those benefits. Check the relevant state or territory revenue authority’s requirements, including how to apply and when assistance can be paid or claimed
Firstmac Home Loans Compared With Other Lenders
Firstmac competes with major banks and other non-bank lenders. The most useful comparison considers product flexibility, lending criteria, costs, and service.
| Feature | Firstmac | Major Banks | Other Non-Bank Lenders |
| Lender structure | Non-bank lender with broker distribution | Deposit-taking banks with broader banking services | Varies by provider |
| Offset options | Eligible variable products offer an offset sub-account | Many offer separate offset accounts on selected products | Depends on the lender and product |
| Redraw | Available on eligible variable loans | Common on eligible variable loans | Product-specific |
| Construction lending | Available on selected products | Available with many major banks | Depends on lender |
| SMSF lending | Selected SMSF products, including residential refinance options | Availability varies | Some specialist lenders offer it |
| Government deposit schemes | Do not assume participation; verify eligibility | Some banks participate | Participation varies |
| Income assessment | Policies may recognise certain variable income types | Criteria differ by bank | Some specialise in complex income cases |
Firstmac Versus Major Banks
A major bank may suit you if you want your transaction account, savings, credit card, and home loan under one institution. Some banks also offer separate offset accounts with eligible deposit protection.
Firstmac may be worth comparing if its lending policy better suits your income structure or property plans. However, you should weigh that flexibility against account arrangements, fees, and the bank’s complete offer.
Firstmac Versus Specialist Non-Bank Lenders
Other non-bank lenders may cater to applicants with complex income, credit issues, or unusual property circumstances. Their policies and pricing differ considerably.
Firstmac is not automatically the best option for borrowers with impaired credit or unusual circumstances. Compare the actual policy for your situation rather than relying on the lender category.
Pros And Cons Of Firstmac Home Loans
Firstmac’s strengths are most relevant when its features align with how you plan to use the loan.
| Pros | Cons |
| Multiple loan types | Product conditions differ, so comparisons require careful checking. |
| Offset sub-account option | Its offset sub-account is not protected by the Financial Claims Scheme. |
| Variable loan redraw | Fixed loans do not provide the same redraw access. |
| Construction and SMSF lending | Specialist lending has additional eligibility requirements. |
| Broker-distributed products | You may need a broker rather than a traditional branch-based application. |
| Policies covering some variable income | Acceptance depends on evidence and individual assessment. |
The main drawback is not necessarily a particular fee or feature. It is the need to confirm the exact terms of the product being offered.
Firstmac Customer Service And Reputation
Firstmac provides online account access and telephone customer support. Its published contact information lists customer service hours from 7 am to 7 pm Australian Eastern Standard Time, Monday to Friday.
Customer experiences are mixed, as they are with many lenders. Online reviews include positive comments about helpful staff and application support, alongside complaints about account access and administrative delays.
These reviews can identify questions worth asking, but they do not establish how every customer will be treated. Consider how the lender communicates, handles discharge requests, and resolves issues before committing.
Firstmac also experienced a cyber incident reported in May 2024. ABC News reported that customer information, including some driver’s licence and banking details, was exposed. This is relevant historical context when assessing information security and customer communication.
Ask about current security arrangements if you have concerns. Also review the lender’s privacy information and available account security controls.
Is Firstmac Good For First-Home Buyers?
Firstmac may suit first-home buyers who have a sufficient deposit and meet its standard lending criteria. Its variable products and construction lending may also suit eligible buyers building a new property.
However, buyers with smaller deposits should compare the total costs carefully. A lender risk fee or LMI can affect the amount you need to borrow.
Buying a house involves more than securing finance. First-home buyers should compare government assistance, deposit requirements, repayment flexibility, and upfront costs before selecting a lender.
Is Firstmac Good For Property Investors?
Firstmac offers investment lending, including selected interest-only options. These can suit investors who want to manage cash flow while holding a rental property.
However, interest-only repayments do not reduce the principal during the interest-only period. Your repayments may rise when the loan switches to principal and interest.
Investors should also compare interest rates, tax considerations, offset arrangements, and any investor-specific risk fees. Seek independent tax advice before making decisions based on expected deductions.
Is Firstmac Good For Refinancing?
Firstmac may suit borrowers refinancing an existing loan if its proposed pricing and features improve their overall position. Eligible borrowers may also investigate residential SMSF refinance options.
Before switching, compare your existing loan with Firstmac’s written offer. Include discharge fees, establishment costs, valuation charges, and any break costs on a fixed loan.
Also consider whether you will lose valuable features or face stricter conditions. A lower interest rate does not always mean a lower total borrowing cost.
Who Should Consider Firstmac Home Loans?
Firstmac deserves consideration if you want a non-bank lender and its products fit your financial circumstances.
It may suit:
- Owner-occupiers seeking flexibility: Eligible variable loans offer offset and redraw features that can help manage spare funds.
- Borrowers building a home: Construction lending supports staged funding, subject to the lender’s requirements.
- Property investors: Selected investment and interest-only products provide different ways to structure repayments.
- Eligible SMSF borrowers: Specialist products may support residential investment refinancing.
- Some applicants with variable income: Firstmac’s broker policies may recognise overtime, bonuses, and commission where the evidence meets its criteria.
Another lender may be preferable if you need a government deposit scheme, a separately protected offset account, or a specific specialist lending policy.
How To Apply For A Firstmac Home Loan
Firstmac’s home lending products are distributed through broker channels, so confirm the current application pathway for your selected product.
The process generally involves the following steps:
- Review your finances. Calculate your deposit, ongoing expenses, existing debts, and likely repayments before deciding how much to borrow.
- Compare suitable products. Assess variable and fixed options, offset arrangements, fees, and repayment restrictions.
- Prepare your documents. Gather identification, income evidence, bank statements, liability details, and property information as requested.
- Complete the application. Your broker can explain the relevant product requirements and submit the application through the appropriate channel.
- Complete the lender’s assessment. Firstmac assesses your financial position, the property, and whether the proposed loan meets its lending criteria.
- Review the formal offer. Read the interest rate, fees, repayment terms, offset conditions, and any special requirements before accepting.
- Proceed to settlement. Your conveyancer or solicitor coordinates the legal process, while your lender arranges funding once the conditions are satisfied.
Pre-approval is not a guarantee of final approval. Avoid making unconditional commitments based solely on an indicative borrowing figure.
Final Verdict: Is Firstmac Worth Considering?
Firstmac is a credible alternative to traditional banks for borrowers seeking a range of home lending products. Its variable loans, offset sub-account, construction finance, investment lending, and selected SMSF options provide several reasons to compare its offering.
Nevertheless, the right choice depends on the details of your application. You should examine the actual rate, comparison rate, fees, risk charges, and lending criteria rather than relying on general claims about competitiveness.
The offset sub-account deserves particular attention because it differs from a separate bank deposit account. Its funds are not protected by the Australian Government’s Financial Claims Scheme. Likewise, the Green Home Loan’s NatHERS requirements and current availability should be verified before you rely on them.
Overall, Firstmac is worth considering when its policy and features match your needs. Compare its written offer with alternatives before deciding which lender provides the best overall value.
Frequently Asked Questions About Firstmac Home Loans
Is Firstmac A Bank?
No. Firstmac is an Australian non-bank lender that provides home loans and other finance products. Its lending arrangements differ from those of traditional deposit-taking banks.
Does Firstmac Offer A 100% Offset Account?
Firstmac offers a 100% offset sub-account on eligible variable products. However, it is a sub-account of the loan rather than a separate deposit account, and its funds are not covered by the Financial Claims Scheme.
Can You Get A Firstmac Home Loan With A 10% Deposit?
Potentially. Firstmac advertises lending up to 90% of the property value on selected products, subject to eligibility. A higher LVR may involve an LMI premium or an applicable lender risk fee.
Does Firstmac Offer Fixed Rate Home Loans?
Yes. Firstmac offers fixed-rate options for selected terms. Check the current product range, additional repayment limits, and potential break costs before applying.
Does Firstmac Offer A Green Home Loan?
Firstmac has offered a Green Home Loan linked to energy-efficient properties. Its published green lending material identifies a minimum seven-star NatHERS rating for qualifying homes, but you should confirm current product availability and eligibility requirements.
Can Self-Employed Borrowers Apply For Firstmac Home Loans?
Yes, eligible self-employed borrowers can apply. Approval depends on the product, income evidence, financial position, and Firstmac’s lending criteria.
Does Firstmac Participate In The Australian Government 5% Deposit Scheme?
Firstmac is not identified as a participating lender in the current information reviewed for this article. Check Housing Australia’s official participating-lender list before applying if you intend to use the scheme.
Can You Refinance An SMSF Property Loan With Firstmac?
Firstmac publishes residential SMSF refinance options, subject to its lending requirements. Confirm the eligible loan purpose, security, repayment type, and superannuation compliance requirements before proceeding.
Disclaimer
This article provides general information only and does not constitute personal financial, legal, tax, or credit advice. Loan products, interest rates, fees, and eligibility criteria can change without notice.
You should review the lender’s current product documents and consider your financial circumstances before making a borrowing decision. Approval is subject to the lender’s assessment and applicable terms.
More Resources For Homebuyers
- Firefighters home loan review
- CBA home loan review
- ANZ home loan review
- Auswide home loan review
- Bank of Melbourne home loan review
Sources Used In This Article
The following sources provide further information about Firstmac’s products, lending criteria, and Australian financial protections.
- Firstmac Home Loans — Outlines variable, fixed, and construction products, offset arrangements, repayment options, and redraw features.
- Firstmac Products And Rates — Provides current product information, indicative pricing, and lending conditions.
- APRA Financial Claims Scheme — Explains the government protection available for eligible deposits held with covered financial institutions.
- Housing Australia — Provides official information about the Australian Government’s home guarantee programs and participating lenders.
