Commonwealth Bank of Australia says it will acquire up to A$4 billion of the loan book of Wizard Home Loans.
The acquisition of "prime mortgages" was in conjunction with the purchase by Aussie Home Loans of the Wizard brand and distribution network, the bank said.
The Wizard
mortgage portfolio included "prime mortgages that meet the Commonwealth Bank's strict lending criteria and are 100 per cent mortgage insured, with a maximum loan to valuation ratio of 90 per cent," the bank said.
Commonwealth will acquire A$2 billion of loans at the end of February, 2009.
It said discussions are continuing in relation to the timing of the acquisition of a further A$2 billion in loans.
Commonwealth said the acquisition "will have little impact on the Bank's tier 1 capital ratio, nor the Bank's 2009 funding program".
- AAP
