Home owners plough cash into mortgages during lockdown (AFR)

Voluntary payments into mortgages more than doubled in July, August and September from the previous 12 months, data from non-bank lender Firstmac shows, raising the question whether consumers will save, rather than spend, extra cash handed to them in last week's budget.

Firstmac's analysis of its direct retail mortgage book shows the level of additional payments made by borrowers jumped to an average 10.2 per cent of the portfolio in the past three months, compared with the monthly average payment of 4.8 per cent last year.

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10 Jul 2020

Firstmac finds its deepest-ever investor base in new deal (Kanga News)

Firstmac’s latest residential mortgage-backed securities (RMBS) deal demonstrates the continued rebound of nonbank securitisation since the COVID-19 crisis, the issuer says, with deep investor engagement leading to strong demand. 

Firstmac’s immediate liquidity needs are now met, allowing it to focus on retaking prime mortgage market share from the major banks.

The transaction is the issuer’s first since a A$1 billion deal on 27 March which came at the depths of the COVID-19 crisis and was the first to be supported by the Australian Office of Financial Management (AOFM)’s Structured Finance Support Fund.

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