Marie Mortimer, Firstmac's Chief Commercial Officer, highlighted the increasing interest among brokers for more robust caravan financing options. She noted that many brokers have observed a surge in clients seeking lifestyle finance, particularly for caravans, but have found the available options lacking. Firstmac's new secured caravan loan addresses this gap by offering a straightforward and value-driven product that brokers can confidently recommend to their clients.
The loan features both fixed and variable rate options, with fixed rates starting at 7.14% per annum and variable rates beginning at 6.59% per annum. Borrowers can select loan terms ranging from three to seven years, providing flexibility to suit various financial situations. The secured nature of the loan is designed to offer a more affordable entry point into caravan ownership compared to unsecured alternatives.
Mortimer emphasized that this product not only broadens brokers' offerings but also strengthens client relationships by providing solutions that cater to diverse financial needs throughout their lives. By assisting clients with a range of products, including caravan loans, brokers can enhance client loyalty and engagement beyond traditional home lending cycles.
Industry data underscores the popularity of caravanning in Australia. In the year leading up to December 2024, Australians embarked on 15.2 million caravan and camping trips, contributing $14 billion in spending and accounting for 57.1 million nights away, predominantly in regional areas. Additionally, national caravan and campervan registrations have surpassed 901,000, marking a 27% increase since 2019.
Firstmac's entry into the caravan loan market reflects a broader trend among non-bank lenders diversifying their product portfolios to meet evolving consumer demands. This move is poised to provide Australian homeowners with more accessible and competitive financing options for their caravan purchases, aligning with the nation's enduring enthusiasm for caravanning adventures.
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