Homeloans and RESIMAC are merging to create one of Australia’s largest non-bank home lenders with a loan book of more than $13 billion.
RESIMAC, a non-bank financial institution, provides branded and third-party lending products, and has been operating in the Australian market for 30 years.
Homeloans is an ASX-listed non-bank lender specialising in home loans. Its major shareholders include National Australia Bank and Macquarie Bank.
The two lenders want a bigger share of the mortgage market dominated by the big four banks. They believe a merger will give them greater scale, improved growth opportunities and a broader distribution platform for mortgage products.
Robert Scott, the Homeloans chairman, says the two have highly complementary businesses and strategies.
“Homeloans has a strong brand in the Australian mortgage industry and a national distribution network, while RESIMAC has well established securitisation, product manufacturing and development capabilities,” he says.
The merger will bring together the Homeloans brand, existing wholesale funding arrangements and third party broker relationships with RESIMAC’s established securitisation capabilities, strong product development and distribution channels.
“This allows the merged group to have both a strong and diversified distribution and funding capability which will allow it to pursue additional growth opportunities in the Australian and New Zealand markets and be in a more robust position to manage any future changes to the regulatory environment,” says Scott.
Warren McLeland, RESIMAC’s CEO, will be appointed managing director of the merged group. Scott McWilliam, current CEO of Homeloans, will be joint deputy managing director along with Mary Ploughman, RESIMAC’s executive director of securitisation.
The deal is an all paper merger. RESIMAC shareholders will end up holding 72.5% of the merged group with existing Homeloans shareholders 27.5%.