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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03 May 2020

Firstmac says fewer customers than banks in COVID-19 hardship (Australian Financial Review)


Non-bank lender Firstmac says a lower proportion of its customers have deferred their mortgages compared to major banks, and this should provide comfort to securitisation investors. Firstmac's COVID-19 hardship data shows the quality of it prime book in mortgages.

A summary of the performance of nine Firstmac securitisation trusts, published for investors but seen by The Australian Financial Review, shows that of its almost $13 billion in mortgages, 5.32 per cent are classified as being "impacted" by COVID-19.

Firstmac CEO Kim Cannon, who owns the lender, said the RMBS market had been closed but he was hopeful it would reopen soon as investor confidence returns.

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