ORDE Financial Closes Third $1 Billion RMBS — What Non-Bank Lending's Capital Strength Means for Borrowers

What Is an RMBS and Why Does It Matter?

Non-bank lender ORDE Financial has completed its third $1 billion Residential Mortgage-Backed Securities (RMBS) transaction, with a growing roster of institutional investors reinforcing confidence in Australia's non-bank mortgage sector.

RMBS (Residential Mortgage-Backed Securities) are financial instruments that allow non-bank lenders to package home loans and sell them to institutional investors — effectively recycling capital to fund new mortgages. Unlike major banks that rely on customer deposits to fund lending, non-bank lenders depend on wholesale capital markets including RMBS issuance.

ORDE's third consecutive $1 billion deal is significant for several reasons:

• It demonstrates sustained institutional investor appetite for non-bank mortgage assets
• Growing investor ranks signals the sector is deepening its capital base
• It confirms that non-bank lending volumes are scaling, requiring repeated and larger capital market transactions

What This Means for Australian Borrowers

Strong RMBS markets are good news for non-bank borrowers. When non-bank lenders can efficiently access capital markets:

• Funding remains competitively priced relative to the rate environment
• Lenders can maintain or expand their lending appetite even as banks pull back
• Borrowers — especially those who don't qualify for bank loans — have more options and better terms

Australia's Non-Bank Sector Is Growing

Australia's non-bank lending sector has expanded significantly over the past decade, with specialist lenders serving borrowers who fall outside traditional bank lending criteria. These include:

• Self-employed borrowers seeking Alt Doc loans without payslips
• New migrants and PR holders with limited Australian credit history
• Borrowers needing bridging finance or commercial property loans
• Those who have been declined by major banks

APRA's ADI statistics for Q4 2025, released in March 2026, show that bank mortgage growth is moderating — a gap that well-funded non-bank lenders are positioned to fill with flexible, purpose-built products.

This article is general information only and does not constitute financial advice.