CBA to acquire $2.5 billion Wizard mortgage portfolio
The Commonwealth Bank (CBA) has announced it will acquire a $2.25 billion portion of Wizard Home Loans portfolio from GE Money, and pass on a 1.0 per cent interest rate reduction to those Wizard Home Loans included in the portfolio.
The announcement follows an agreement on December 24 last year for CBA to acquire up to $4 billion of Wizard-originated mortgages.
This agreement was made in conjunction with an agreement by GE Money to sell the Wizard Home Loans brand name and Australian distribution network to Aussie Home Loans.
The $2.25 billion Wizard mortgage portfolio will be funded through CBA from February 28 this year, with the interest rate reduction to take effect from March 9, 2009.
CBA retail banking services group executive Ross McEwan said there are more than 16,000 Wizard mortgage customers who will benefit from this rate reduction.
He said the bank will also “continue to the look at the interest rates being offered to all of our customers to ensure that they receive competitive pricing”.
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