Home News Homeloans and RESIMAC merge to take on Aussie banks

Homeloans and RESIMAC merge to take on Aussie banks

Font size :

Homeloans and RESIMAC, two of Australia’s major non-bank home lenders, have finalized a $135 million merger to form a bigger rival to banks in the mortgage market.

Homeloans is the object of a reverse takeover by RESIMAC, which will control 72.5 per cent of the merged group. RESIMAC’s chief executive Warren McLelland will serve as CEO of the merged group. Homeloans will be issuing new shares to RESIMAC’s owners, with the merged group remaining on the ASX under Homeloans’ listing.

According to Homeloans, the tie-up will help the company gain access to RESIMAC’s securitisation program to finance new lending while the entity would expand distribution channels to originate new loans.

“We as an organisation can unlock value in RESIMAC that they couldn’t unlock themselves and vice versa,” said Homeloans chief executive Scott McWilliam. “While we are in the same sector and selling the same product, our expertise are in different parts of that process.”

This deal brings together the two loan providers in spite of their very different business models. While Homeloans focuses on writing mortgages using wholesale funding, RESIMAC uses securitisation to fund its home loans, meaning individual loans are bundled together and sold to investors as a mortgage-backed security.

The two companies have issued a combined total of over $3 billion in new loans over the past financial year, and they have a combined profit of nearly $14 million in the 2014-2015 financial year, making them small players in the mortgage market dominated by Australia’s big four banks.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

Mortgage applications drop in second quarter Mortgage applications drop in second quarter

This marks the “beginning” of a downward trend, says Equifax executive Read more

To break monopoly, many smaller lenders could become banks To break monopoly, many smaller lenders could become banks The proposed change could break the Big Four’s monopoly over the mortgage market and help families get cheaper home loan rates ... Read more

Borrowing against the home: A strategy to pay for aged care Borrowing against the home: A strategy to pay for aged care Such debts can generally be divided into long-term and short-term loans ... Read more

NAB slashes growth forecasts for houses, units NAB slashes growth forecasts for houses, units Numerous factors, including tighter credit rules and the growing supply of new stock, have reined in Australia’s seemingly unstoppable housing market boom ... Read more

More mortgage news and articles

Sponsored Links

Saturday, Jul 22, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords