Household Capital raises $270m to expand Australian retirement housing and funding

24 June 2025

Key points

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

Household Capital, a leading Australian provider of home equity retirement funding, today
announced the completion of HHC 2025-1 RMBS Trust, a $270m mortgage securitisation dual-rated
by Moody’s and S&P. Citigroup Global Markets Australia (“Citi”) acted as Arranger and Citi and
Macquarie Debt Markets team (“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 $1.3 trillion in retiree home equity available today.

The Household Capital portfolio attracted investment from global insurance, superannuation,
banking and institutional credit fund investors from Australia, US, UK, EU and Hong Kong. The final
transaction had strong investor demand and was more than 4x covered. The senior A Note was
rated AAA by S&P and Aa2 by Moody’s with an average weighted life of 3.4years based on an
underlying portfolio loan-to-value ratio of less than 25%. An innovative subordinate X Note with an
average weighted life of 1.8years was introduced in the securitisation to provide sustainable
originator funding of mortgages with lower cashflows.

The HHC 2025-1 transaction builds on the successful inaugural 2024-1 transaction to efficiently allow
the trust 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 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 customers 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$730m.

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 to deliver 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”.

“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 similar

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 ris