Firstmac
About Firstmac
Firstmac is an Australian-owned financial services provider with more than 40 years’ experience in residential home loans and, more recently, auto loans. It has written more than 130,000 home loans in the past decade and manages approximately A$16 billion in prime mortgages, A$600 million in auto loans and A$300 million in cash investments.
Firstmac is fully funded by RMBS and ABS, having issued more than A$40 billion in RMBS since 2003. This year, Firstmac was proud to receive the KangaNews Award for Australian Nonbank Financial Institution Issuer of the Year, for the second year in a row. Voted by market participants, it is bestowed on the issuer that most impressed the market.
The company’s distribution model has evolved from 100% third-party to include about one-third of balance sheet assets sourced through Firstmac’s direct retail digital platform, www.loans.com.au. Firstmac has also diversified its business to include auto financing and investment in managed funds.
The company originates only prime loans and uses its best-in-class credit practices and risk management framework to ensure the quality of its portfolio. Less than 0.3% of the Firstmac loan portfolio is at 30-plus days arrears and 86% of its loans have loan-to-value ratios of less than 80%.
Ownership and capital structure
Firstmac is a privately owned company headquartered in Brisbane, with offices in Sydney, Melbourne and Manila.
| SIZE OF LOAN BOOK | A$15.6BN |
| MAKEUP OF LOAN BOOK | PRIME RESIDENTIAL MORTGAGES: 100% |
| GEOGRAPHIC DISTRIBUTION OF LOAN BOOK | AUSTRALIA: 99% FOREIGN RESIDENTS: 1% |
| OUTSTANDING DEBT ISSUANCE | SECURITISATION: A$13BN EQUIVALENT SECURITISED WAREHOUSE FACILITIES: A$3BN |
Funding strategy
Firstmac’s policy is to ensure a minimum of two-thirds of its loan portfolio is funded by way of term match-funded RMBS, with the remainder funded through short-term warehouse facilities.
Firstmac has been a regular issuer of RMBS in the Australian domestic and offshore markets, with 30 active public and privately rated transactions. Total issuance amounts to about A$40 billion.
FOR FURTHER INFORMATION PLEASE CONTACT:
James Austin
Chief Financial Officer
+61 7 3017 8883
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Paul Eagar
Director Securitisation
+61 2 8579 8403
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nonbank Yearbook 2023
KangaNews's eighth annual guide to the business and funding trends in Australia's nonbank financial-institution sector.
