Firstmac Offers Industry-Leading Investor Package

Non-bank lender Firstmac has bucked the market trend by announcing a substantial rate reduction for some property investors at the same time as other home lenders are raising their investment loan rates.

Firstmac has launched an Investor Package which extends its Owner Occupier rate, starting at 3.79 per cent, to the investment loans of customers who bring the lender both their home loan and investment loan.

National Sales Manager Jake Sanders said the offer threw out the usual premium that borrowers had to pay across the industry for investment loans.

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17 Nov 2016

Firstmac Completes $145 Million RMBS Re-issue

Australia’s largest non-bank lender Firstmac today priced a $145 million issue of Residential Mortgage Backed Securities (RMBS) at 130 basis points over the Bank Bill Swap Rate (BBSW).

The deal compares favorably with its last transaction in October which priced at 135 basis points over BBSW.
Firstmac CFO James Austin said the RMBS market was functioning well and had seen ongoing tightening of funding margins over the course of the year.

Firstmac’s RMBS issuance since 2003 totals more than $16 billion. Its most recent prior issue was a $600 million issue in October 2016.

Mr Austin said the issue had been well supported by domestic investors, with a total of five investors participating in the transaction which was arranged by nabSecurities Australia.

As a reissuance there was only a single class of notes. The Class A2R notes, totaling $145 million, benefited from 15.69% of credit enhancement, rated AAA by S&P and Fitch, with a 3.3-year weighted average life, priced at 1M BBSW +1.30%;

Firstmac Limited is Australia’s largest non-bank lender, with more than 35 years’ experience in home loans. Firstmac has written in excess of 84,000 home loans in the past decade and manages approximately $8 billion in mortgages and $150 million in cash investments. Firstmac is a premier sponsor of the Brisbane Broncos.
 

Media enquiries to Duncan Macfarlane on 0434 184 264