Here are the most common reasons why your Firstmac results might now match with what we're showing in Quickli 👇🏻
'Inv Loan Balance' Input
The 'Inv Loan Balance' input field in Firstmac needs to have the correct breakdown for each applicant for all existing and proposed investment loans.
This input field is strictly for negative gearing purposes but can have a major impact on someone's borrowing capacity.
Dependants
Dependants should only be entered under one borrower and inputting them under both borrowers will have a negative impact on HEM.
Investment Expenses
Investment expenses should always be inputted into Quickli for each investment property.
However, Firstmac advised us that you are not to enter the investment expenses into the actual Firstmac calculator. This is why there's no explicit input field for Investment Expenses in their calculator. Firstmac's view is these expenses are already accounted for via the 80% shading.
Firstmac Max Capacity
The max capacity figure on display in the Firstmac calculator for investment loans is technically wrong as their calculator doesn't properly iterate the negative gearing benefits received as the proposed investment loan is increased.
Quickli handles this perfectly 🤓
To test this theory, copy and paste the Quickli max capacity figure on display into the Firstmac proposed loan AND update the 'Inv Loan Balance' fields with the new correct loan balances (for negative gearing purposes). After doing that you should get an NDI of exactly 1.0 to show on the Firstmac calc.
Company Profits
Firstmac's policy and tooltip in their calculator confirms they do not accept company profits.
If you have a self employed applicant (borrowing in individual name) and this applicant's Pty Ltd business has profits then Firstmac will not use those profits in servicing.
The Firstmac calculator might have you thinking you can input company profits, but you shouldn't. Not sure why their calculator doesn't make that more clear. Quickli is ignoring your company profits the same way Firstmac will.
If you have any question reach out to us in the chat window in the bottom right corner of your screen.