Aussie Home Loans has been rejected by ANZ Bank in its quest for the $2 billion needed to revitalise Aussie’s home loans business BusinessDaily reports.
Aussie Home Loans has been negotiating with other financial institutions to secure funding for its home loan business after minority shareholder Commonwealth Bank failed to meet Aussie’s funding requirements the Herald Sun reports.
ANZ Bank is reported to have told Aussie chairman John Symond they could not deliver the more than $2 billion in funds requested last week after the proposal was buried in a management committee meeting by ANZ’s Australian chief executive, Phil Chronican.
“We’ve been out there trying to get as much funding as we can, we are still part-funded by Commonwealth Bank, but we’re looking for billions more.” John Symond told BusinessDaily.
Aussie Chairman John Symond has seen the impact of the Reserve Bank of Australia’s successive increases in interest rates bite, with Aussie seeing falls in loan volumes of 15 percent in the last two months, falling from $1 billion to $850 million.
The rejection by ANZ Bank of Aussie’s request for funding will hurt the company in it’s growth plans. In February Aussie Home Loans was recognised as one of the country’s top 10 fastest growing franchises in BRW Magazine’s annual Fast Franchises list, this rejection by ANZ wil no doubt put the brakes on the company’s expansion plans.
The BRW Fast Franchises list ranks companies according to their average annual turnover growth over three years, and as a result Aussie came in at number seven. The magazine also ranks companies by growth in the number of retail outlets, with Aussie securing the top spot.
“In our 18 years of operation, we have achieved a great deal of success and introduced competition into the home loan industry, changing the way Australians borrow money for their homes.” John Symond said of the company’s franchise plans.
