A non-major lender has made a new acquisition from Keystart that it says demonstrates its commitment to Western Australia.
Non-major bank acquires $1.35b home loan portfolio
Bendigo and Adelaide Bank have agreed to purchase $1.35 billion of standard residential home loans from Keystart Housing Scheme Trust by equitable assignment, based in Western Australia.
The acquisition was formalised with the Western Australian State Government earlier this week and is set to be completed by early December this year.
Bendigo and Adelaide bank managing director Mike Hirst says the bank is looking forward to developing a long term relationship with Keystart and its customers.
“We are delighted to be able to work with Keystart and the Western Australian Government to support this important lending program for home buyers in Western Australia.
“The acquisition complements our existing business in Western Australia and improves our geographic diversification by increasing the proportion of our loan book in Western Australia from approximately 11 to 13 percent. We will also have potential to provide 6,000 Keystart customers with a range of complementary products and services," said Hirst.
“Keystart has a long and successful history of providing residential loans to customers who satisfy rigorous serviceability criteria but do not have sufficient initial savings for a deposit.
“These customers have proven to be very reliable in repaying their loans and Keystart has an outstanding record of low losses compared to the broader market.
Hirst said the customers in the portfolio they have purchased have an average track record of loan repayments for more than five years.
"We will not be acquiring any loans that are more than one month in arrears.
“We strongly believe that the values of Keystart and the Bank are very much aligned, particularly in relation to providing tangible benefits to the local communities in which we operate.
Bendigo and Adelaide Bank have agreed to purchase $1.35 billion of standard residential home loans from Keystart Housing Scheme Trust by equitable assignment, based in Western Australia.
The acquisition was formalised with the Western Australian State Government earlier this week and is set to be completed by early December this year.
Bendigo and Adelaide bank managing director Mike Hirst says the bank is looking forward to developing a long term relationship with Keystart and its customers.
“We are delighted to be able to work with Keystart and the Western Australian Government to support this important lending program for home buyers in Western Australia.
“The acquisition complements our existing business in Western Australia and improves our geographic diversification by increasing the proportion of our loan book in Western Australia from approximately 11 to 13 percent. We will also have potential to provide 6,000 Keystart customers with a range of complementary products and services," said Hirst.
“Keystart has a long and successful history of providing residential loans to customers who satisfy rigorous serviceability criteria but do not have sufficient initial savings for a deposit.
“These customers have proven to be very reliable in repaying their loans and Keystart has an outstanding record of low losses compared to the broader market.
Hirst said the customers in the portfolio they have purchased have an average track record of loan repayments for more than five years.
"We will not be acquiring any loans that are more than one month in arrears.
“We strongly believe that the values of Keystart and the Bank are very much aligned, particularly in relation to providing tangible benefits to the local communities in which we operate.
