Non-bank RMBS issue bolsters funding for adviser-led residential, commercial growth
Basecorp Finance, one of the New Zealand’s leading specialist lenders recognised by NZ Adviser, has closed a residential mortgage-backed securities (RMBS) transaction of about $560 million, in what it describes as among the larger RMBS transactions completed in New Zealand, and a comparatively rare local issue to include commercial property mortgage loans.
The private transaction, Basecorp RMBS 2026-1, is the non-bank lender’s fourth capital markets deal. With this issuance, Basecorp’s total capital markets funding now stands at around $1.4 billion. Approximately 95% of the notes in the latest transaction were rated by Fitch, which again undertook the ratings analysis.
Advisers originate the majority of underlying loans
Basecorp said mortgage advisers remain central to the loans backing its securitisations.
John Moody (pictured), chief financial officer at Basecorp, said the adviser channel continues to underpin the lender’s mortgage book.
“We’re very grateful to the mortgage adviser community for their support of the Basecorp business, and their important contribution to the quality of our mortgage book,” Moody said.
He said intermediaries originated nearly all the loans in the new pool.
“Approximately 95% of loans in this transaction were originated through these channels, and we appreciate the continued support of advisers who have consistently dealt with us over many years as well as the growing number of new advisers who have established relationships with us in recent years,” Moody said.
Positioning for future origination volumes
Basecorp said the RMBS issue is intended to support expected lending volumes over the coming years. The funding was secured at what the lender described as robust pricing margins, despite a more uncertain market backdrop.
Explaining the timing of the deal, Moody said the decision to issue now reflects recent growth in lending activity. “We believe this is the right time to access capital markets, following a strong 12 months of origination volumes for the business,” he said.
He added that the transaction would enable Basecorp to recycle capacity in its warehouse programmes, maintain competitive and consistent pricing for advisers, and keep the business positioned to meet anticipated medium-term demand for its mortgage products as market conditions gradually stabilise.
For mortgage brokers, that funding means continued access to a non-bank lender active across both residential and commercial mortgage segments.
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