Aussie Home Loans has reached 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.

The acquisition will mean Aussie will have a broader spread of franchised and corporate outlets and more than 800 mortgage advisers nationally.

As part of the acquisition Aussie’s 33 per cent shareholder, The Commonwealth Bank, will re-finance up to $4 billion worth of Wizard-originated home loans.

Executive Chairman of Aussie, Mr John Symond, 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”, he added.

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. Wizard chairman, Mr Mark Bouris, will be retained as a key adviser in the combined business.

Mr Symond said, “Wizard has been a leading non-bank player for more than a decade and Mark Bouris has been a very strong consumer advocate. We share great brands and will assess their continued use as we go forward as a stronger group with a powerful, combined sales and marketing force and product offering”.

Mr Bouris 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”.