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Firstmac prices $500m RMBS issue

The non-bank lender has confirmed it has successfully priced an RMBS issue priced at over $500 million.

Non-bank lender Firstmac has successfully priced a $500 million residential mortgage-backed securities (RMBS) issue.

This achievement follows a recent RMBS issue of over $1 billion, highlighting Firstmac’s continued success in the sector.

Chief financial officer James Austin emphasised that Firstmac has established an unparalleled track record in originating and financing SMSF property loans within Australia.

This achievement marks the fourth transaction in this particular series, with all three preceding transactions having exhibited exceptional performance.

“With strong institutional investor support, this funding pipeline is really cementing our position as the pre-eminent lender of residential SMSF in Australia,” Mr Austin said.

The issue was fully subscribed and priced at +140, merely +10 bps above the prime non-bank market.

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Mr Austin said the transaction was embraced by domestic real money investors, underlining the trust and confidence in Firstmac’s offerings.

Firstmac remains committed to transparency through its regular provision of monthly loan book data to investors.

Mr Austin affirmed the continued strength of investor confidence in the RMBS market, attributing it to the resilience of Australian borrowers, who have weathered 12 consecutive rate hikes imposed by the Reserve Bank of Australia (RBA).

This latest RMBS issuance is poised to fuel Firstmac’s ongoing expansion in the residential SMSF property lending sector, which has been notably overlooked by major banks.

Mr Austin said: “Our residential SMSF product has evolved into a substantial part of our business, and it’s no surprise. We bring competitive SMSF options and rates to a segment that has long been underserved.

“We believe in keeping things simple, including residential SMSF lending. That’s why we offer a hassle-free, low-fee product with both variable and fixed-rate options.”

He further explained Firstmac’s commitment to simplicity, offering a hassle-free, low-fee product with both variable and fixed-rate options.

The Firstmac SMSF suite is tailored for clients in pursuit of a more competitive solution, whether refinancing or acquiring a new residential investment property within their SMSF.

With this latest RMBS issue, Firstmac’s total RMBS issuance since 2003 has now reached nearly $43 billion.

Firstmac Limited, headquartered in Brisbane, is an independent Australian financial services provider with over four decades of experience in home and investment loans.

The company has facilitated more than 130,000 home loans and manages a portfolio of $14 billion in home loans.

In addition to its core mortgage business, Firstmac operates a growing auto finance division with a current portfolio valued at $750 million.

[Related: Firstmac prices $1.2bn RMBS]

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