Australian housing wealth lender Household Capital has issued HHC 2026-1 RMBS Trust, an AUD $304m reverse mortgage securitisation, the firm’s third in three years.
The Household Capital portfolio attracted new investment from the Australian superannuation sector, as well as multiple insurance, banking and institutional credit fund investors locally and globally. The final transaction was more than 2x covered.
The senior A Note was rated Aaa by Moody’s, AAA by S&P, and AAA by Morningstar DBRS, with an average weighted life of 3.3 years based on an underlying portfolio loan-to-value ratio of less than 25%. A subordinate X Note with an average weighted life of 2.2 years, which was first introduced in the firm’s 2025-1 transaction, was included in the securitisation to provide sustainable originator funding of mortgages with lower cashflows.
Household Capital intends to list the senior notes on the ASX subsequent to the transaction.
“Our latest innovative mortgage portfolio securitisation is a great outcome for Australian retirees and a big step forward in the evolution of the sector. We are delighted to work with Citi and Macquarie in delivering the high quality of our customers and the low-risk nature of our mortgages to local and global investors. Our scalable securitisation program is essential to sustainably scale retirement housing and funding and help Australians meet the challenge of an aging population,” said Household Capital CEO Joshua Funder.
“We were delighted to attract strong, global, diverse investor demand for our securitisation. The way Australian retirees access the wealth in their homes using a Household Loan is different from comparable approaches here and elsewhere. The rating on our portfolio reflects a series of key differentiators of Household Capital equity release mortgages: higher voluntary discharge, shorter duration, lower negative equity risk and relatively higher cashflows. We have achieved a very strong triple rating and continued to innovate so these securities deliver for our customers, our investors and Household Capital,” he added.
Vixory Capital served as strategic adviser to Household Capital on the transaction; Citi acted as arranger and Citi and Macquarie acted as joint lead managers on the transaction.
