Non-bank lender Firstmac has confirmed its status as Australia’s leading SMSF property lender, completing yet another $500 million Residential Mortgage-Backed Securities (RMBS) issue backed by SMSF loans.
Chief Financial Officer James Austin said that Firstmac has now built an unrivalled track record in writing and funding SMSF property loans in Australia.
“This is the fourth transaction in this series, with the three transactions completed prior to this all having performed very well,” Mr Austin said.
“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, just +10bp above the prime non-bank market.
The transaction was taken up entirely by real money domestic investors.
Firstmac continues to provide monthly data on its loan book to investors, making it the most transparent lender in Australia.
Mr Austin said investor confidence in the RMBS market remained strong, as Australian borrowers continued to demonstrate their resilience in the wake of 12 consecutive RBA rate hikes.
He said the latest RMBS issue would fund Firstmac’s continued expansion in the residential SMSF property lending market which had largely been 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,” Mr Austin said.
“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.”
The Firstmac SMSF suite is 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 latest RMBS issue brings the total amount of RMBS issued by Firstmac since 2003, to almost $43 billion.
Brisbane-based Firstmac Limited is an independently-owned, Australian financial services provider with more than 40 years’ experience in home and investment loans.
It has written in excess of 130,000 home loans and has $14 billion in home loans under management. Firstmac also has a growing auto finance business with a current portfolio of $750 million. Firstmac is a premier sponsor of the Brisbane Broncos.
Media contact: Lauren Clancy at email lclancy@porternovelli.com.au