Brokers help Firstmac hit $8bn milestone

Firstmac announced the milestone today with founder Kim Cannon attributing the growth to competitive products and a “strong” relationship with brokers.

The lender places “great value” on its relationship with brokers, Mr Cannon said, adding that this relationship “underpinned” the lender’s success.

“Brokers play a key role in our business and it is only getting stronger as shown by the record number of Firstmac loans written by brokers in May.”

Mr Cannon also predicted that Firstmac would reach $10 billion under management “in the near future”.

In a statement, Firstmac said breaking the $8 billion number leads it to becoming the 14th largest residential mortgage lender and strengthens its title as Australia’s largest non-bank lender.

Currently, the lender has $9.3 billion in loan facilities and since December 2016 has issued $2.7 billion in Residential Mortgage-Backed Securities to both domestic and international investors. Of the loan facilities, $1.3 billion is held in undrawn, redrawable offset facilities.

Mr Cannon said: “Firstmac has grown over the past 38 years by bringing simple, affordable, and competitive products to consumers, providing them with a real choice outside the banks.”

“This has been achieved while maintaining a premium-quality loan book with a rate of arrears much lower than the big four.”

[Related: Specialist lender issues $650m in RMBS in 12 months]