Home loan disruptors Lendi and Aussie to merge

Lendi, Australia’s number one online home loan platform, and Commonwealth Bank of Australia, today announced that they have entered into an agreement to merge Lendi with Aussie Home Loans.

The proposed transaction would see Lendi’s market-leading digital technology combine with Aussie’s iconic brand and significant broker and franchisee network, to create a market leader in the Australian home loan market.

The merged business will maintain a multi-brand strategy and is expected to deliver a range of benefits for both customers and brokers including:

• provide more Australians with a greater choice of home loan lenders, products and ways to engage with their mortgage broker via in person or online channels to ensure they are getting the best product suited to their individual needs;
• provide an opportunity for Aussie brokers and franchisee network to leverage Lendi’s technology and platform, including integration with lender credit-decisioning engines and regulatory and compliance tools; and
• increased investment in both brands to accelerate future growth and investment opportunities as a merged business.

Lendi shareholders will hold the majority shareholding of 55% in the merged business, while Aussie’s current owner, CBA, will hold a 45% shareholding and continue to provide funding for the Aussie Select branded home loan product.

David Hyman, CEO and co-founder of Lendi, said, “This is an exceptional opportunity to drive the growth and digitisation of two companies that have led disruptive change for the benefit of customers in the Australian home loan market.

“Lendi was born digital. Our technology, platform and people have revolutionised not only how Australians access home loans but also market transparency. The role of digital technology in strengthening customer outcomes, compliance and operational agility is only growing in importance and by coming together with a robust and trusted business like Aussie, we will be able to drive even stronger outcomes for more homeowners and brokers alike.”

James Symond, Chief Executive Officer of Aussie, said, “The merger is another important step in the almost 29-year evolution of Aussie as Australia’s leading retail mortgage broker. We are currently posting record lending volumes through our network of over 970 brokers and over 210 stores and, by underpinning Lendi’s technology across our national broker network, we will further accelerate this growth and momentum.”

Aussie’s award-winning broker and franchisee network will remain central to providing consumers with the support, choice, and expert guidance in the sometimes confusing and complex process of securing a home loan. Lendi will continue to develop its market leading technology and processes to deliver better customer experiences and outcomes via its platform, home loan consultant and specialist teams.

Completion of the transaction is subject to ACCC approval and other customary conditions. Completion is expected to occur by mid calendar year 2021.