ColCap’s latest prime mortgage deal has reshaped funding lines, with the landmark securitisation drawing in deep global demand.
ColCap Financial Group has priced a $2.7 billion residential mortgage‑backed securities (RMBS) transaction – the largest RMBS ever issued by an Australian non‑bank and the first 2026 deal in the lender’s Triton program.
The Triton 2026‑1 issue was secured against a diversified book of Australian prime residential mortgages, including owner‑occupied and investment loans, as well as self‑managed super fund (SMSF) loans.
The non-bank lender said this was sourced through multiple channels, including the broker network and ColCap‑owned brands Granite Home Loans and Zeus by LMG.
Strong demand saw the transaction lift from an initial $1 billion at launch to the final $2.7 billion tag, making it a watershed moment for the non‑bank sector.
ColCap CEO Andrew Chepul said the transaction underlined both market appetite and the group’s place in the non‑bank landscape.
“ColCap has a reputation earned over the last 20 years as a leader in prime mortgage origination and asset management. We’re a trusted partner for investors looking for secure, highly‑rated securities and responsible portfolio management,” he said.
He added that the record‑breaking size signalled how the firm’s market position had evolved.
“Our latest $2.7 billion RMBS – the largest non‑bank RMBS ever – is a sign to the broker market that we’ve never been better placed to offer brokers highly competitive, innovative products, which are designed to meet the needs of standard and niche borrowers,” Chepul said.
Funding firepower and competitive pricing
ColCap said the transaction would broaden access to competitively priced prime funding for its network of mortgage managers by locking in a large parcel of term funding at once.
Chepul stressed that this would translate into tangible benefits for distribution partners and clients.
“This RMBS gives all our partners, including the mortgage managers we fund and brokers we work with, access to prime mortgage finance at competitive rates. This ultimately helps them realise the dreams of their clients – and grow their businesses,” he said.
He described the deal as evidence of the lender’s securitisation strength and long‑running investor relationships.
“We’re pleased our track record of performance and strong relationships with investors has delivered the largest non‑bank lending transaction of its kind. This is a testament to our securitisation leadership and the high quality of Australian non‑bank prime lending,” he said.
The structure includes a five‑year note designed to give investors certainty over their return profile and to remove reinvestment risk for that slice of the capital structure over the term.
Chepul framed the broader mechanics of the deal as part of a reinforcing loop between investment performance and borrower pricing.
“Our investment management track record allows us to lock in a highly competitive cost of funds, which we can then ultimately pass on to borrowers through competitive rates,” he said.
He added that the transaction spoke to the central role of housing finance in Australia’s economic story.
International investors back Australian prime story
ColCap treasurer David Carroll said the response from global investors reflected both the strength of the loan pool and the broader Australian backdrop.
“We see strong demand for asset performance, and we continue to meet that demand. ColCap has nurtured investor relationships over many years, and many continue to return on the back of the consistent asset performance we’ve been able to deliver,” he said.
The RMBS was announced on 16 February and priced on 20 February, with Westpac Institutional Bank acting as arranger and joint lead manager alongside a syndicate, including Commonwealth Bank of Australia, DBS Bank, MUFG Securities, National Australia Bank, Natixis CIB, Standard Chartered Bank, and United Overseas Bank.
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