Powered by MOMENTUM MEDIA
subscribe to our newsletter

Firstmac completes largest RMBS issue

Non-bank lender Firstmac has priced its largest residential mortgage-backed securities issuance at $1.4 billion.

Firstmac has announced that it has completed its $1.4 billion residential mortgage-backed securities (RMBS) issue – it’s largest one to date.  

Kim Cannon, managing director at Firstmac, said 25 institutions invested in the oversubscribed issue.

Further, more than half of the institutions were based overseas, including in the UK, Singapore and Japan.

According to Firstmac, the RMBS issue was completed at 1.23 per cent over the bank bill swap rate, which was “consistent” with Firstmac’s $1 billion issue in October 2018.

Advertisement
Advertisement

The latest issue accounts for nearly half of the non-bank lender’s annual funding program of $3 billion and brings the total amount of RMBS issued by the Firstmac since 2003 to more than $24 billion.

“This is a great vote of confidence from foreign investors in our business and in the Australian property market more broadly,” Mr Cannon said.

“The cloud of uncertainty that was hanging over the Australian property market before the election has been lifted and Firstmac is well positioned to benefit.”

Firstmac said its loan book has increased by 10 per cent from $10 billion at 30 June 2018 to $11 billion currently, which was attributed to growth within the third-party and proprietary channels.

“There are many ingredients that go to our successful funding program, but one of the most important is the increasing recognition by the market of our ‘premium prime’ market segment,” Mr Cannon said.

PROMOTED CONTENT


[Related: Pepper, Mortgage House RMBS issuances get rated]

Firstmac completes largest RMBS issue
Firstmac
mortgagebusiness

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Ezekiel MacNevin

Ezekiel is a journalist on the mortgages, property investment and wellness titles at Momentum Media. 

Before joining the team in 2019, he was a freelance journalist for Vice Australia, Pulse Radio and the Sydney-based travel publication Global Hobo, among others. 

Ezekiel studies a double Bachelor of Communications and International Studies at the University of Technology, Sydney.

You can email Ezekiel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Latest News

The Commonwealth Bank has indicated that it will cut opening hours across 90 regional branches, with impacted staff to spend the rest of the...

A report has found that home ownership is the single most important factor affecting a person’s perceived level of financial wellness. ...

The complaints authority has recruited three new ombudsmen (including from ANZ and Westpac), and promoted three others internally. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.