THE HOW OF WHAT WE DO
Source obtains wholesale funding to power its loans by pooling groups of residential home loans together, and using them as security for investment bonds issued to institutional investors. These are known as Residential Mortgage Backed Securities (RMBS).
This process enables lenders, like Source access to the capital markets for residential home loans enabling us to access funding lines previously only available to Banks and large Corporate firms; however, as a more nimble business with significantly lower costs, this translates directly to lower rates and enhanced solution features for our clients.
Funding
Source’s funding is powered by the wholesale warehouse providers such as Westpac, Deutsche Bank and Bendigo and Adelaide Bank who provide an interim facility to settle loans on an individual basis until the pool is of a sufficient size to term out to investors.
Securitisation
Australian securitisation is used as an integral Funding method by Banks and Non-Banks alike with issuances increasing from $2 billion p.a in 1995 to almost $50 billion in 2021 and has broadly maintained at around $50 Billion over 2022 and 2023. Securitisation has become a major part of capital markets around the world, resulting in Australian securitisation products securing a strong reputation and high performance within the global space.
Source personnel have more than 20 years of vital experience in this space through the Mortgage Ezy group of the same shareholders. Winning numerous awards since 2001 we remain committed to disrupting the market to provide a faster, easier way by ‘cutting the red tape’. We have continued to deliver access to highly competitive loan products for our Business Partners since 2001, and are committed to continuing to provide fully featured housing loans, combined with an individualised service proposition delivered at the lowest cost possible. Our belief is people want to be treated as individuals, not just numbers, and we provide real choice for borrowers to vote with their feet.
