First Mortgage Trust

What First Mortgage Trust does

First Mortgage Trust (FMT) is a New Zealand-based non-bank investment manager and property lender, established in 1996 by three Tauranga law firms and now managed by First Mortgage Managers Limited (owned by CapitalGroup since early 2019). The company operates three pooled managed funds — the Group Investment Fund (GIF), the First Mortgage PIE Trust, and a Wholesale Fund — that channel retail, PIE, and wholesale investor capital into first-mortgage loans secured over residential, commercial, industrial, and rural property throughout New Zealand. FMT also provides direct first-mortgage lending products (residential investment, commercial/industrial, development and construction, bridging finance, equity release), positioning itself as the country's largest non-bank first mortgage lender with over $1.8 billion in loans across 500+ mortgages and over $2 billion in funds under management serving 7,500+ investors.

The business earns revenue primarily through a management fee of approximately 1.65% of fund value (including GST) on its $2B+ FUM, supplemented by net interest spread retained on its loan book (where borrower rates start from 6.95% p.a. for standard loans and 7.35% p.a. for development loans), early withdrawal fees (2% in year one, 1% in year two), and reserve fund contributions. GTM is relationship-led: a national business development manager network across Auckland, Bay of Plenty/Waikato, Lower North Island, and South Island engages directly with borrowers, while investor acquisition relies on professional adviser referrals (accountants, lawyers, mortgage advisers), an investor portal, direct website downloads, annual investor meetings across multiple NZ cities, and content marketing including a quarterly newsletter featuring economist Tony Alexander. Operating technology is built around third-party integrations (DocuSign, APLYiD/Onfido biometric verification) with no disclosed proprietary AI/ML systems.

FMT is supervised under the Financial Markets Conduct Act 2013 by Trustees Executors Ltd (GIF) and Public Trust (PIE Trust), with KPMG as external auditor. The company is headquartered in Tauranga with offices in Auckland, Wellington, and Christchurch, employs 51-100 staff (grown from 2 at inception), and reports a 30-year track record with no loss of investor capital, an annualised pre-tax return of 5.22% for the June 2026 quarter, and non-performing loans of 0.78% as at 31 May 2026.

Name

First Mortgage Trust

Legal name

First Mortgage Managers Limited

Website

https://fmt.co.nz

Company type

Private

Founded year

1996

Operating status

Operating

Headcount range

51–100 employees

Short description

First Mortgage Trust is a New Zealand non-bank investment manager and the country's largest non-bank first mortgage lender, operating pooled funds (Group Investment Fund, PIE Trust, Wholesale Fund) that channel capital from 7,500+ retail and wholesale investors into $1.8B+ of first-mortgage loans across residential, commercial, industrial, and rural property nationwide.

Ownership category

akta.pro rank

Product category

Non-Bank Property Lending & Mortgage-Backed Investment Funds

NAICS

Portfolio Management and Investment Advice (523940), Other Investment Pools and Funds (5259)

SIC

Mortgage Bankers & Loan Correspondents (6162)

akta.pro primary industry

Direct Lending — Senior Secured (First Lien) (FSAHAJAA)

akta.pro secondary industries

Private Credit / Direct Lending (FSAAAHAG), Middle-Market Lending (FSANADAI)

Keywords

• Non-bank mortgage lending
• Managed investment funds
• Property finance lending
• Mortgage-backed investment
• Retail investment funds

Headquarters

HQ city

Tauranga

HQ country

New Zealand

HQ region

Oceania

Offices4 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Management Fee — Fund Charges: FMT charges approximately 1.65% of the Fund value (including GST) for management services. This fee covers the cost of managing the First Mortgage Trust Group Investment Fund, including investment income facilitation, lending oversight in line with the Trust Deed and SIPO, liaison with supervisors and custodians, and compliance management. This is deducted from the fund before quarterly distributions are paid to investors.
2. Interest Income — Property Lending: FMT earns interest income from its loan book of over $1.8 billion. Interest rates start from 6.95% p.a. for standard loans up to $5m and 7.35% p.a. for development loans up to $5m. Loans are interest-only or capitalised-interest structures, typically with terms of 3 months to 4 years. FMT is New Zealand's largest non-bank first mortgage lender.
3. Withdrawal Fees: FMT reserves the right to charge a withdrawal fee of 2% during the first year of investment and 1% during the second year. No withdrawal fee applies after two years. This creates a sticky deposit base aligned with the typical 18-month to 2-year loan book duration.
4. Reserve Fund Contributions: A small portion of the Fund's income is set aside each year and accumulated within the reserve fund to help meet possible losses on individual loans, providing additional investor protection while generating fund-level reserves.

Pricing tiers

Go-to-market motion3 records

Distribution channels5 records

Marketing channels9 records

Core offering

First Mortgage Trust is a New Zealand investment manager and non-bank first mortgage lender that pools retail and wholesale investor capital into managed funds and deploys it as first-mortgage secured property loans across residential, commercial, industrial, and rural property sectors. It operates three investment funds (Group Investment Fund, PIE Trust, Wholesale Fund) and offers a suite of lending products including residential, commercial/industrial, development/construction loans, bridging finance, and equity release. Lending is supported by conservative LVRs and a regional BDM network across Auckland, Tauranga, Wellington, and Christchurch.

Product overview

First Mortgage Trust operates as a New Zealand-based investment manager and non-bank property lender, offering three core investment funds (Group Investment Fund, PIE Trust, and Wholesale Fund) that pool investor capital to provide first-mortgage secured loans across residential, commercial, industrial, and rural property sectors. The company also provides a suite of lending products including residential investment loans, commercial/industrial loans, development/construction loans, bridging finance, and equity release facilities. Supporting services include a Managing Your Cash in Retirement facility for retirees seeking flexible access to funds, along with digital tools such as investment and retirement calculators. The funds are differentiated by investor type (retail via GIF and PIE Trust, wholesale via Wholesale Fund) and tax treatment (PIE Trust offers Prescribed Investor Rate advantages for eligible investors), while all lending products share the common feature of first-mortgage security with conservative LVRs.

Differentiator

Problem solved

Functional benefit

Brands

• Group Investment Fund (GIF): The primary managed investment fund that invests in loans backed by first mortgages over land and buildings, and cash deposits at registered banks.
• First Mortgage PIE Trust
• Wholesale Fund

Products and services

• Group Investment Fund (GIF) A managed investment fund that invests in loans backed by first mortgages over New Zealand land and buildings and cash deposits at registered banks, providing quarterly income distributions to retail investors. Minimum initial investment $500 and subsequent investments of $100+, with ~1.65% annual management fee (incl. GST).
• First Mortgage PIE Trust A portfolio investment entity that invests into the Group Investment Fund, offering tax advantages through Prescribed Investor Rates (PIR) capped at 28% for eligible New Zealand investors. Same minimums as GIF ($500 initial, $100 subsequent) with PIR-based tax treatment of 10.5%, 17.5%, or 28%.
• Wholesale Fund An investment vehicle offering indirect exposure to the Group Investment Fund for wholesale investors meeting eligibility criteria, with a minimum investment of $500,000 and minimum two-year term, including bonus return incentives issued as additional units paid out of FMML's own funds.
• Residential Investment Loans First mortgage loans for investment-related property purchases, residential equity release, and land purchases for development, with LVRs up to 75% for land and buildings in fee simple. Interest rates from 6.95% p.a. with interest-only and capitalised interest options.
• Commercial / Industrial Loans First mortgage financing for commercial property development, industrial units, and commercial investments, with interest rates starting from 6.95% on lending up to $3m. LVRs up to 66.7% for commercial/industrial property.
• Development / Construction Loans Financing for property development projects including subdivisions, residential builds, terraced housing, apartment developments, and commercial property developments, with interest rates from 7.35% p.a. and capitalised interest option to defer debt servicing during construction.
• Bridging Finance Open-end bridging finance to fund new property purchases while selling existing assets, with capitalised interest options to negate debt servicing requirements during the bridging period. No early repayment costs when the exit strategy is asset sale.
• Equity Release Borrowing against existing completed property to fund further investment or business opportunities, with interest-only and capitalised interest loan options available.
• Managing Your Cash in Retirement A facility allowing retirees to invest with FMT while maintaining flexibility to drawdown funds as needed, with regular monthly payments into their bank account on the 10th or 20th of the month, the ability to make larger withdrawals for significant expenses, and flexible arrangement reviews at no cost.

Quantifiable outcome

• Never lost investor capital in 30 years of operations — including through the GFC and COVID-19 pandemic
• +4 more outcomes

Named customers6 records

Segments6 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Nine partnerships are on record, tiered core, supporting and minor.

• Trustees Executors LtdcoreOthersTrustees Executors Ltd monitors the First Mortgage Trust Group Investment Fund under a Trust Deed. It is New Zealand's oldest independent trustee company, providing an external layer of oversight ensuring investor capital is managed in accordance with the Trust Deed. This supervisor relationship provides investors with confidence that their money is being invested correctly.
• Public TrustcoreOthersPublic Trust acts as the supervisor of the First Mortgage PIE Trust, providing independent oversight of this registered scheme in addition to the supervisor arrangements for the Group Investment Fund. Public Trust is a New Zealand government-backed entity providing trustee and supervision services.
• KPMGcoreOthersKPMG audits the financial statements of both the First Mortgage Trust Group Investment Fund and the First Mortgage PIE Trust, providing independent assurance on the accuracy of financial reporting.
• APLYiD and OnfidosupportingTechnology or IntegrationFMT uses APLYiD and Onfido as biometric identity verification options to comply with AML/CFT Act obligations. These services use facial recognition technology to biometrically match customer faces to their NZ driver licence or passport. FMT notes these are not the only verification options — certified document alternatives are also available.
• Floral Art New Zealand (FANZ)minorOthersFMT sponsors Floral Art New Zealand, a nationwide community of over 1,300 members across 66 clubs and groups united by a shared passion for floral art. FMT logo appears on FANZ materials and events.
• Grammar Juniors Rugby Football ClubminorOthersFMT sponsors Grammar Juniors Rugby Football Club, which also celebrates its 30th year. FMT's logo features on all Grammar Juniors girls jerseys as part of the sponsorship.
• Save the KiwiminorOthersFMT is a sponsor of Save the Kiwi, the national charity working to ensure the survival of New Zealand's iconic kiwi bird. The charity's vision is to increase kiwi populations by 2% per year through community-led conservation groups, iwi, DOC, landowners, and businesses.
• Tony Alexander (Independent Economist)supportingOthersRenowned economist Tony Alexander contributes regular market commentary and economic insights to FMT's quarterly investor newsletter. He produces a weekly publication 'Tony's View' with a housing focus. His contributions provide investors with economic context around interest rates, property markets, and the broader investment environment.
• Youth Sponsorship Grant Recipients (Sport and Arts)minorOthersFMT runs an annual Youth Sponsorship Grant programme supporting 16–25 year olds excelling nationally or internationally in sport, music, or the arts. Two age categories (16–19 and 20–25) receive grants of $8,000 (top candidate) or $2,000 (runner-up). Recipients include athletes (swimmers, canoe slalom, figure skating, adaptive golf, powerlifting), musicians, and gymnasts. Sponsorship funds do not come from investor funds.

Scale indicators9 records

Recent moves6 records

Expansion highlights5 records

Broad incumbents

• Fisher Funds Management: Fisher Funds is one of New Zealand's largest active investment managers, offering KiwiSaver, managed funds, and investment solutions. It is a broader incumbent competing with FMT for NZ retail investment capital, with a much wider product range but no specialist mortgage focus.
• Milford Asset Management: Milford Asset Management is a prominent NZ investment manager offering KiwiSaver, managed funds, and portfolio management services. It is a broader incumbent targeting similar NZ retail and wholesale investors as FMT, but with diversified multi-asset strategies rather than mortgage-backed focus.
• Simplicity (Financial Solutions): Simplicity is a New Zealand non-profit investment manager offering low-cost KiwiSaver, investment, and managed funds. It is a broader incumbent in the NZ managed funds market targeting similar retail investor segments to FMT, with a different low-cost multi-asset positioning.
• Booster Financial Services: Booster is a major NZ investment manager and KiwiSaver provider managing diversified portfolios including fixed income and mortgage-backed investments. It is broader than FMT but competes for the same NZ retail retirement capital and serves overlapping retail investor segments.

Direct peers

• Avanti Finance: Avanti Finance is a New Zealand non-bank lender providing first-mortgage and development finance to property investors and developers. It is the most direct competitor to FMT in the non-bank first mortgage space, with a similar relationship-led BDM model and target borrower segment.
• Heartland Group Holdings: Heartland Group Holdings is an NZX-listed NZ non-bank lender offering reverse mortgages, asset finance, and business lending under the Heartland brand. It competes with FMT in non-bank property lending and is one of the few NZ scaled non-bank lenders with similar investor visibility.
• Resimac: Resimac is an Australian non-bank mortgage lender and fund manager that originates, funds, and services prime and specialist residential mortgages. It is a direct peer in the non-bank first mortgage lending and mortgage-backed fund management model, with comparable product and funding structures.
• Liberty Financial: Liberty Financial is an Australian non-bank lender providing residential mortgages, asset finance, and investment funds. While Australian, it operates an adjacent non-bank mortgage and fund management model similar to FMT's two-sided investor/lender platform.

Emerging players

• Squirrel Mortgages: Squirrel Mortgages is a New Zealand digital mortgage broker offering residential and investment property loans. It is an emerging specialist comparator in the NZ non-bank mortgage space, with a different (digital-first) channel model but overlapping borrower segments.
• NZ Home Loans: NZ Home Loans is a New Zealand mortgage broker and advisory firm focused on helping borrowers access non-bank and specialist lending. It is comparable to FMT as a specialist NZ mortgage channel, though it plays the broker role rather than direct lender.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/first-mortgage-trust
• Facebookfacebook.com/fmt.nz

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about First Mortgage Trust