Household Capital raises $304m in AAA rated mortgage securitisation

Household Capital raises $304m in AAA rated mortgage securitisation, attracting new diverse global investors and expanding Australian 60+ home lending

Key points

• Innovative mortgage securitisation in Australian retirement housing and funding
• Financing to help retired Australians meet the challenges of an ageing population
• Third successful scalable financing structure to meet rapidly growing demand
• Triple-rated by Moody’s, S&P, and Morningstar DBRS reverse mortgage RMBS securitisation

20 October 2026:

Household Capital, a leading Australian provider of home equity retirement funding, today announced the completion of HHC 2026-1 RMBS Trust, a $304m mortgage securitisation triple-rated by Moody’s, S&P and Morningstar DBRS. Citi acted as Arranger and Citi and Macquarie Bank Limited (“Macquarie”) were Joint Lead Managers on the transaction.

The innovative mortgage securitisation allows Household Capital to continue to meet the increasing demand from retired Australian homeowners seeking responsible, long-term funding for their retirement needs – a sector based on more than $3 trillion in over 60s home equity available today.

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 had strong investor demand and was more than 2x covered amid record Australian RMBS market activity.

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%. An innovative subordinate X Note with an average weighted life of 2.2 years which was first introduced in the 2025-1 transaction, was included in the securitisation to provide sustainable originator funding of mortgages with lower cashflows.

The HHC 2026-1 transaction builds on the successful inaugural 2024-1 transaction, and subsequent 2025-1 transaction, to efficiently allow Household Capital to fund ongoing customer drawdowns on their home equity under their existing approved amounts as well as through potential future increases to their credit contracts – an important structural feature to ensure home equity is made available by the trust to fund the current and future needs of retirees.

The Household Capital mortgage securities were attractive to global investors based on meeting international risk retention standards. Household Capital intends to list the senior notes on the ASX subsequent to the transaction.

Household Capital is a specialist 60+ lender, originating mortgages that don’t require the borrower to have an income or make regular repayments and provides a range of home wealth access options distributed direct to customer as well as via partners, advisers and brokers. The company began mortgage origination in 2019 and has built a contracted mortgage portfolio of over AUD$1.2bn.

Household Capital CEO Joshua Funder said: “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.”

Commenting further, Funder said: “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.”

Household Capital Chair Paul Rogan said, “Household Capital continues to lead the way in providing access to home wealth for older Australians.

The securitisation of our mortgage portfolio is a major evolution in providing billions of dollars each year in additional funding for an aging population.”

Vixory Capital served as strategic advisor to Household Capital on the transaction.

Citi acted as Arranger and Joint Lead Manager on the transaction.

Macquarie Bank Limited acted as Joint Lead Manager on the transaction.

—Ends—

Moody’s PR

S&P PR

Morningstar DBRS PR

Josh Funder – CEO

Household Capital

Josh.funder@householdcapital.com

Household Capital is an Australian-owned independent retirement funding provider founded in 2016 with the aim to help retired Australians ‘Live Well at Home’. It offers retirees a responsible, sustainable and flexible financial solution that allows them to bundle their superannuation savings, equity in their home and their Age Pension to achieve their retirement goals while continuing to live at home. www.householdcapital.com.au

The Joint Lead Managers, together with their respective related bodies corporate, shareholders and affiliates, and each of their respective officers, directors, partners, employees, consultants, contractors, agents, advisers and representatives (each a “Limited Party”) have not authorised, permitted or caused the issue or lodgement, submission, dispatch or provision of this announcement and there is no statement in this announcement which is based on any statement made by the Joint Lead Managers or any other Limited Party. To the maximum extent permitted by law, the Joint Lead Managers and each Limited Party expressly disclaim all liabilities (including, without limitation, for fault, negligence, or negligent misstatement) in respect of, and take no responsibility for, any part of this announcement, and make no representation or warranty (whether express or implied) regarding any part of this announcement, including as to the accuracy or completeness of any information in this announcement.