​Japan enters Aussie mortgage market with $500 million deal

by 26 Nov 2013
AMP Bank has announced a partnership with one of Japan’s largest banks, Bank of Tokyo-Mitsubishi, in a landmark deal that signals the entry of Japanese banks into the Australian home loan market.

The Japanese lender will provide AMP with a $500m one-year mortgage-backed facility, reported the AFR.

The Japanese lender, which already lends $10.4bn to companies in Australia, has been exploring the Australian mortgage market for over a year.

Bank of Tokyo-Mitsubishi previously signalled its interest in the bank after acquiring a 15% stake in the funds management arm of AMP in December 2011.

Growth opportunities for banks are limited in Japan, and the deal could pave the way for further deals of this kind. Bank of Tokyo-Mitsubishi is also expected to extend credit to other lenders, reported the AFR.

The deal comes as industry leaders call for increased competition in the banking sector of Australia, calling on the upcoming Financial Systems Inquiry to decrease regulation to encourage overseas interest.

Bank of Tokyo-Mitsubishi is one of the largest lenders in Japan with an equivalent of $1.9 trillion of assets and a deposit base of $1.34 trillion, more than the combined deposit base of Australia’s four largest banks.

According to the latest APRA statistics, AMP has $7.7bn of mortgage assets and a 1% share in Australia’s $1.2 trillion mortgage market.

Last year, Australian Broker Online reported Japanese online bank Sony Bank was looking to enter the Australian market and was in talks with AMP regarding potential deals.


  • by BRILLIANT BROKERS 26/11/2013 9:13:28 AM

    I have given AMP a try on several deals in the last five years and have less than a handful of clients with AMP loans. They have so many things going for them, but not enough to make it all hapen..... recently had a good experience with a Credit Manager, their SMSF accreditation was a joke and I don't feel confident they would do justice to an international lenders experience of what the Australian Property Maret has to offer - I'd love to see some of the other Major Asian Institutional Lenders enter this space - in the hope that the four majors (and their subs) will pick up their game.

  • by Old Joe 26/11/2013 11:28:00 AM

    AMP had some very sharp rates a few years ago however when the products switched to SVR in a few years they were ok but not exciting. This all sounds good , the only issue is unless they come up with something that is out there and unique why use them.

  • by NoTimeLikeTheFuture 26/11/2013 12:57:17 PM

    I wish they would enter the LMI market instead.. i think there is easier money in LMI.

    Just charge the rates on offer a month ago and collect..

    The current collusive duopoly is offensive