Add Liberty Financial Group to the list of non-bank lenders bringing supersized residential mortgage-backed securities (RMBS) to the market.
Just days after non-bank lender ColCap Financial reset the bar with Australia’s largest-ever RMBS — a $2.7 billion deal — and as Liberty flagged accelerating momentum in its business lending arm, Liberty followed suit with a $2 billion RMBS of its own. The back-to-back jumbo prints underscore the expanding scale of Australia’s non-bank sector and strengthening investor appetite for credit Down Under.
"We are humbled to announce our largest capital markets issue and grateful for the support investors have extended to our business from our very first public term issuance," said Peter Riedel, Liberty's chief financial officer.
Riedel added to Australian Broker that "this milestone highlights the depth of trust domestic and international investors have in Liberty’s lending expertise and, crucially, in our commitment to supporting customers from the moment their loan is originated through to final repayment.”
The bond, the largest in Liberty's history, was upsized from $1 billion to $2 billion, thanks to strong investor interest, and is backed by a pool of residential mortgages, both prime and non-conforming, Riedel said.
But it's not just Liberty and ColCap that are leaning into the market. Earlier this month, rival non-bank lender MA Money priced a $1.2 billion security. The deal followed Brisbane-based Firstmac’s $2.5 billion transaction just three months prior, highlighting the momentum building across Australia’s non-bank sector.
Rising securitizations signal that non-banks are expanding, giving them more firepower to write additional loans, increase origination volumes, broaden product offerings and capture greater market share. They also reflect growing investor and borrower demand in Australia’s mortgage market.
At the same time, traditional banks are tightening their lending standards, leaving more space for non-bank lenders to step in.
Brokers stand to benefit by understanding the full range of lending options available to their clients, including non-banks, allowing them to match borrowers with the most suitable products, navigate complex credit needs and seize opportunities that traditional banks may overlook.
In the case of Liberty, the non-bank's loan book dipped 4% in the back half of 2025. But its latest RMBS gives the lender room to rebuild momentum in mortgages. Meanwhile, Liberty's business lending arm stood out, posting strong growth over the same period.
