First Federal rolls out new policy and pricing updates

Effective immediately, the lender has introduced sharper pricing across its product suite, with rates now starting from 6.59 per cent, alongside a range of policy updates aimed at widening access to finance.

Also among the changes, PAYG borrowers will now be accepted from day one in their current role, while self-employed applicants will only need to provide one year’s tax return rather than two.

First Federal has also expanded the types of income it will consider, including allowances, overtime, bonuses, and commissions, while increasing rental income recognition to up to 90 per cent.

Additionally, the lender has broadened its borrower eligibility criteria, including accepting applications where both borrowers are on temporary visas.

Other changes include loan-to-value ratios of up to 90 per cent with no minimum credit score requirement, unlimited cashout at up to 80 per cent LVR, and the acceptance of units from 35 square metres.

According to First Federal, the changes were prompted by broker feedback and are designed to give brokers greater flexibility when placing clients who may not fit traditional lending policies.

“We have listened to what brokers need and built a policy that gives them more room to work with,” First Federal CEO James Angus said.

“Sharper pricing, broader eligibility, and simpler income requirements. It means brokers can help more of their clients and get more deals across the line.”

Angus said that the changes formed part of a broader effort to simplify the lending process for brokers.

“We built First Federal around the idea that getting a home loan across the line shouldn’t be the hardest part of a broker’s day,” Angus said.

“A team that picks up the phone, a credit process that makes sense, fast turnaround times, no clawbacks and a lender that genuinely wants to find a way, that’s what Australia’s Easiest Home Loan looks like in practice.”

[Related: Low-deposit lender Skip joins SFG panel]

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