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Homeloans Limited, last week informed the market of its plans to merge with securitisation pioneer and leading non-bank lender RESIMAC in a deal that would create a significant mortgage lender with a combined portfolio in excess of $13 billion.
The proposed merger between two of of the country's largest non-banks, will result in a non-bank lending giant with a total loan book of $13 billion, easily rivalling some of Australia’s smaller banks.
RESIMAC shareholders will hold 72.5 per cent, while Homeloans shareholders will hold 27.5 per cent of the merged group. However, the group’s majority shareholder is actually a fund manager based in the British Overseas Territory of Bermuda.
If successful the deal will put the group’s mortgage book on par with challenger bank ME ($14.3 billion) and well above AMP Bank ($10.5 billion), Citi ($7.4 billion) and HSBC ($9.8 billion).
“The Homeloans brand is an important part of the merged group. It is very much the street brand and the broker brand. So there will be no change there,” Mr McWilliam, CEO Homeloans said. “Assuming this goes through, there will be a change of control. But it doesn’t change things for our borrowers, brokers or business partners.”
Mr McWilliam said the value proposition of non-banks today is stronger than it has been in a long time.
