The new product is designed for creditworthy self-employed borrowers who can demonstrate their income through lodged Australian Taxation Office (ATO) Business Activity Statements (BAS).
Firstmac Chief Commercial Officer Marie Mortimer said the new offering would help brokers secure better outcomes for high-quality self-employed borrowers who had previously faced limited options and higher interest rates.
"We’re targeting established, high-quality self-employed customers who have been operating their business for at least two years and have a strong credit profile," Ms Mortimer said.
"These customers can find themselves paying substantially-higher interest rates. We're giving brokers a new way to help these customers, with competitive pricing that reflects their credit quality."
Designed for both homebuyers and investors, the loan provides flexible options including variable or fixed rates, principal and interest or interest-only repayments, and the choice to add an offset account.
Rates start at 6.99% for an owner-occupied, 70% LVR P&I loan with a low application fee and no ongoing monthly fees.
Borrowers can verify their income using just six months of Australian Taxation Office (ATO) Business Activity Statements (BAS).
Ms Mortimer said Firstmac’s approach was deliberately focused on the higher-quality end of the self-employed market, which stays true to the DNA of Firstmac.
"We're not looking to compete across the entire alt-doc market. We're specifically targeting the premium end, where borrowers have strong credit credentials but don't quite meet traditional documentation requirements," they said.
"We recognise that self-employed borrowers manage their finances differently to PAYG employees. This product gives brokers another way to support good customers without forcing them into a higher-priced lending solution simply because their income is evidenced differently."
The launch will also give brokers greater flexibility to retain self-employed customers within Firstmac’s lending range.
"For brokers, it's about having another competitive option for a good customer," Ms Mortimer said.
"We want brokers to be able to support more of their self-employed clients with competitive pricing while maintaining the credit standards and service they expect from Firstmac."
The alt-doc launch forms part of a broader expansion of Firstmac's product range, including enhancements to construction, bridging, vacant land and automotive finance offerings.
Firstmac will maintain its conservative credit approach, with alt-doc loans funded separately through its Eagle RMBS program rather than its Benchmark prime RMBS program.
About Firstmac
Brisbane-based Firstmac Limited is an independently-owned Australian financial services provider with more than 47 years' experience in home lending. It has written over 210,000 home loans and currently manages $23 billion in residential mortgages. Firstmac also has a $1 billion auto finance portfolio and is a premier sponsor of the Brisbane Broncos.