Aussie Home Loans, a mortgage broker, has reached an agreement with GE Money to acquire Wizard Home Loans for an undisclosed sum.

The business to be acquired includes the Wizard brand, its franchise distribution network covering over 160 outlets in city and regional areas around Australia and over 300 mortgage advisers.

Aussie said that the acquisition will mean that it will have a spread of franchised and corporate outlets and more than 800 mortgage advisers nationally. As part of the acquisition Aussie’s 33% shareholder, The Commonwealth Bank, will re-finance up to $4 billion worth of Wizard-originated home loans.

John Symond, executive chairman of Aussie, said: The acquisition of Wizard accelerates Aussie’s growth initiatives, adding a significant retail channel and distribution capability to our existing operations. This acquisition will provide customers with greater product choices, heightened service levels and the benefits of having a major non-bank player in the mortgage, credit card, insurance, car and personal loans market competing against the major banks.

Aussie will be providing Wizard franchisees with a greater product range, more security and support. Aussie will also supply its marketing, training and technology systems to help them grow their businesses.

Mr Bouris Chairman of Wizard Home Loans said, “This is great news for the consumer, particularly given the shrinkage of the non-bank sector. The combination of these two powerful brands will enhance market competition and choice”.