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Firstmac announced the completion of the $1 billion residential mortgage-backed securities (RMBS) issue backed by SMSF loans.
This makes it the largest RMBS-backed eagle issue on record for the non-bank lender.
Chief financial officer James Austin said that the issue was upsized from $500 million after receiving strong support.
“This is the largest Eagle trade that we have completed to date and demonstrates growing acceptance within the institutional investor market for our SMSF collateral. Pricing was also very good, being at the tight end of historical ranges,” said Austin.
Westpac Banking Corporation served as the lead arranger of the issue, along with managers NAB, WBC, UOB, and SMBC.
The renewed confidence in the market has been attributed to the February rate cut from the RBA. This long-awaited decision has spurred investor activity, said Austin.
This latest RMBS issue completion has instilled some confidence as Firstmac is using the funding to continue expansion into the residential SMSF property lending market.
“Our residential SMSF product has been very popular with investors, and it's not surprising. We're bringing competitive SMSF options and rates to a sector that is largely being ignored,” said Austin.
Towards the back end of 2024, Firstmac announced it had entered commercial SMSF lending after spotting a gap in the market.
What has been described as being largely ignored by the big banks, the non-bank lender said the strategic move was aimed at providing a low-fee option for business owners to assist in purchasing premises through their SMSF.
“We understand that many business owners want the security of owning their business premises instead of being at the mercy of a landlord,” said Firstmac chief commercial officer, Marie Mortimer.
“Our new Commercial SMSF loan aims to make that as easy as possible, with far less of the complexity and red tape that often deters would-be SMSF investors, and the lowest fees on the market.”
According to Firstmac, the loans are available with variable- or fixed-rate options. The variable rate is 7.69 per cent for 70 per cent LVR, rising to 7.99 per cent for 80 per cent LVR. The loan is available for both purchasers and refinancers for up to $2 million and a maximum LVR of 80 per cent.
Over its time, the lender has written in excess of 130,000 home loans and has $18 billion in home loans under management. Firstmac also has a growing auto finance business with a current portfolio of $1 billion.
Related: Firstmac enters commercial lending market
