Athena inks innovative mortgage funding deal
Athena Home Loans has struck an original deal in mortgage funding markets, offloading $300 million of loans it already originated to Newcastle Permanent, a customer-owned bank.
This will allow Newcastle Permanent to use its strong capital levels and liquidity to expand its balance sheet, while providing more firepower to Athena to use its existing warehouse funding facilities to write more loans in competition with the major banks. Since launching 19 months ago, the fintech has originated $1.7 billion of mortgages.
The partnership represents a new direction for Newcastle Permanent, which has $11 billion of loans, with a focus in the Hunter region of NSW, and has been operating for 117 years. It has a common equity tier 1 capital ratio of 20 per cent and the lowest number of customers in hardship of any Australian lender.
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