CBA buys 33% stake in Aussie

Commonwealth Bank has agreed to purchase a 33% stake in Aussie Home Loans after several weeks of media speculation.

Commonwealth chief executive Ralph Norris indicated that Aussie will continue to be run by John Symond independently and said that the acquisition was a strategic holding and, which provides it with an additional investment in the strong and growing home loan industry in Australia.

“The Australian mortgage and housing industries are the backbone of the economy and the purchase of a home remains the largest single investment made by many consumers,” Norris said. “As Australia’s largest home loan provider, it makes good strategic sense to look at alternative investments in this industry that will continue to bring benefits to shareholders and consumers.”

“We understand that there are some consumers that seek the advice and assistance of mortgage brokers in helping them select a home loan option that best suits their needs and circumstances.  As this market continues to develop, a strategic investment in one of the market leading providers in this industry is a natural fit for the Group.”

Founder and executive chairman of Aussie, John Symond, will continue to be the driving force behind the group, which includes car and personal loans and credit cards with expansion of its insurance product range also announced this week.

 “Aussie will continue to be an independent financial services group, but be able to provide customers with a broader product offering and the financial muscle to seize opportunities in this current period of consolidation in the non-bank sector,” Symond said.

“We will have the opportunity to gain additional wholesale funding from the Commonwealth Bank for our Aussie branded suite of mortgage products. We will remain strongly independent, maintain and broaden our alliances with other financial services groups to source the best products available for our customers.”