GE Money sells Wizard to Aussie Home Loans, Commonwealth Bank to buy $2.7 billion in mortgages

24 December 2008

GE Money Australia and New Zealand will sell its Wizard Home Loans brand and franchise network in Australia to the ocuntry's leading mortgage broker Aussie Home Loans, edging out National Australia Bank, for an undisclosed amount.

As part of the acquisition, Aussie's 33-per cent shareholder, Sydney-based Commonwealth Bank (CBA), will re-finance up to A$4 billion ($2.7 billion) worth of Wizard-originated home loans of which it will acquire A$2 billion of loans by the end of February 2009 and is in discussions with GE Money over acquiring the remainder.

Mike Cutter, the chief executive of GE Money in Australia and New Zealand said, "This sale is consistent with GE's strategy to reduce GE Capital to approximately 30 per cent to 40 per cent of the global business.''

The sale of Wizard to Aussie Home Loans is expected to be completed by the end of February 2009, with transition details to be determined in January.

Aussie Home Loans will acquire the Wizard brand, its franchise distribution network covering over 160 outlets in city and regional areas around Australia and over 300 mortgage advisers.

The acquisition will mean Aussie will have a broader spread of franchised and corporate outlets and more than 800 mortgage advisers nationally.