YBR clinches Macquarie mortgage funding

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Mark Bouris has succeeded in making national news headlines with a deal that will see Macquarie Bank fund a new range of Yellow Brick Road-branded mortgage products through the franchise.

After a trading halt on YBR stock yesterday after rumours of the Macquarie deal, YBR confirmed it would launch an "aggressive expansion into financial services" with the aid of Macquarie.

YBR hopes to drive initial demand for a new range of mortgages by kicking off with a discount of 1.15% off its standard variable rate of 6.65% for the first 12 months and a guaranteed 0.86% discount for the life of the loan.

YBR chairman Mark Bouris said the deal will give YBR access to billions in funding according to the Australian Financial Review, and would use it to become a new force for competition.

"The big four banks have had it for themselves and it is now time for some of that market share in home loans to go into others," Bouris told the Financial Review.

"This is war and now I've got a big and aggressive and a smart bank in Macquarie in my corner and that makes a big difference," he said.

Macquarie was one of the key players responsible for stimulating mortgage competition in the 90's, when Aussie was able to undercut major bank mortgage rates significantly.

Bouris played up the idea that YBR could be the start of a new 'fifth pillar' of the banking industry.

“Two goals in life – put a roof over your head and retire comfortably. Everyone in Australia is entitled to that, not just the privileged few,” Bouris said. 

“This venture is about bringing back choice, access and competition like there was in the 90’s.  Plenty of commentators, including politicians, talk about the need for competition, but there is only one way that is going to happen and that is Yellow Brick Road taking the initiative."

The group promises the white label product will be followed by further banking and wealth management products in 2013.

 

  • Kevymac on 23/11/2012 10:08:32 AM

    I've dealt with Macquarie recently, Good luck with that YBR.

  • Kym on 9/11/2012 11:35:33 AM

    VB Liquidity - you are spot on!! Well written.

  • VB Liquidity on 9/11/2012 1:55:03 AM

    "Mark Bouris has succeeded in making national news headlines"- gee that must have been hard given Ch9 is a shareholder of YBR! Goodluck YBR franchisees, may I be so bold to suggest you get a second string funder set up behind Macquarie in case they disappear again, say GE MONEY, no wait, they pulled the pin when times got tough too! Try Banksia, no scratch that, hmmm maybe Aussie will save you, nope that's CBA (one of our 4 pillars). I've got it send the deals Macquarie rejects to RAMS just check the commission as Westpac may pull the wool from under you! Look if all else fails Pepper will have a crack, they might even bail out the whole Macquarie book like they did when they bought Wizard. Yes good luck to our Wizard of Oz as he travels down that Yellow Brick Road in search of the wonderful 5th Pillar. Btw knock on ING's door on your way, a little birdie told me they are a lot closer to finding the 5th pillar! Congrats Adviser on the puff piece! I shall celebrate with a new original VB!

  • Tom on 8/11/2012 7:19:46 PM

    So it seems YBR's wealth management model has been put to the back shelf.

    Back to focusing on good ole mortgages. Good luck being a YBR franchisee right now as we know Mark aint the Wizard any more!

  • Amazed on 8/11/2012 4:55:53 PM

    What a coup!!!!!! A special into rate through a white label product, and then reverting to a normal discount off SVR...... I am stunned that such a coup could be achieved with Macquarie as the partner..... Truley awe inspiring Mark..... speechless in the hype of no new news here type of way. I guess he needed something new to promote since abandoning the financial planning piece of the business.

  • Andy on 8/11/2012 4:50:21 PM

    Read the fine print. This is nothing flash. Not to even start on being funded by Macquarie. How much longer are they going to be around ?

  • Jack on 8/11/2012 3:21:37 PM

    When the GFC hit Macquarie left all their customers high and dry with an additional 1% on their loan. They did not stick around when the going got tough! So much for looking out for the customer.

  • Michael on 8/11/2012 2:51:36 PM

    None of my customers even know YBR exist and customers can get these rates now.
    Bouris is going to need a lot of hot air (and funding) for this new stunt to gain any traction..

  • Broke broker on 8/11/2012 10:45:50 AM

    Mark Bouras is just a wizard,. . . .oh wait,. .

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