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Aussie Home Loans has announced its plans to ramp up the sale of its own securitised home loan products as capital markets continue to improve.
Speaking to The Australian Financial Review, Aussie’s founder and executive chairman John Symond said he wanted to write “billions of dollars” of loans originated by Aussie and packaged for sale as RMBS.
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“We are going to go back on the attack and put out home loans and instead of 95 per cent of our loans being brokered it will fall to 75 per cent,” Mr Symond said.
According to Mr Symond, Aussie’s plan to sell RMBS is already being supported by CBA, who has a 33 per cent stake in the company.
He said assistance from CBA has allowed Aussie to arrange a $1 billion warehouse.
“We have already used about half of that $1 billion and the remainder will be used up over the next three months,” he said.
Mr Symond said Aussie plans to securitise “billions” of loans in a bid to introduce competition back into the industry.
“Now is the perfect time to make the move because Westpac and CBA are pulling in the reigns,” he said.
“We are gearing up over the next four months to get right back into home lending - it will be cheeky and we will provide some competition again.”
Last week, Aussie posted strong growth in loan volumes over the six months to 31 December.
Over the six months, Aussie’s monthly home loan volume increased by 44 per cent, with more than $1 billion in average monthly settlements. The average loan size also increased 12 per cent year on year.
