Lender says the transaction is the fourth of its series
Brisbane-based non-bank lender Firstmac has completed a $500 million residential mortgage-backed securities (RMBS) issue backed by SMSF loans. The transaction was taken up entirely by real money domestic investors.
James Austin (pictured), chief financial officer at Firstmac, said with this Firstmac has built “an unrivalled track record in writing and funding SMSF property loans in Australia.” He said the issue was fully subscribed and priced at +140, which is above the prime non-bank market by +10bp.
“This is the fourth transaction in this series, with the three transactions completed prior to this all having performed very well,” said Austin. “With strong institutional investor support, this funding pipeline is really cementing our position as the pre-eminent lender of residential SMSF in Australia.”
Lending market “largely abandoned” by big banks
With the issue, Firstmac’s expansion in the residential SMSF property lending market will be funded. This lending market had been described to be “largely abandoned by the big banks.”
“Our residential SMSF product has become a substantial part of our business, and it's not surprising. We're bringing competitive SMSF options and rates to a sector that's been largely ignored,” said Austin. “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.”
In a news release, Firstmac said its SMSF suite was the “ideal solution for clients seeking a more competitive offer when refinancing or aiming to purchase a new residential investment property within their SMSF.”
“The application process is straightforward, with a clear policy and minimal supporting documents required. SMSF loans undergo the same speedy approval process as Firstmac’s regular loans,” the release said.
The total amount of RMBS Firstmac issued since 2003 is close to $43 billion with the addition of the latest issue.
Firstmac Limited is an independently-owned, Australian financial services provider that has been around for more than 40 years. It manages over $14 billion in home loans. It also has a growing auto finance business, and its portfolio is worth up to $750 million. Firstmac is also a premier sponsor of the Brisbane Broncos.
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