Bendigo and Adelaide Bank buys $1.35B in WA home loans

Company News

by David Chau

Bendigo and Adelaide Bank (ASX:BEN) will purchase $1.35 billion worth of standard residential home loans from the Keystart Housing Scheme Trust.

The Bank selected these loans from Keystart’s $4 billion total loan book, which has around 18,000 customers.

This deal was finalised today with the WA government (who owns Keystart), and should be completed by early December.

Keystart’s customers are usually first home buyers who don’t have sufficient savings for an initial deposit. Its loans are designed to be transitory products – with around 80 to 90% of its customers refinancing to a mainstream lender over time.

Bendigo and Adelaide Bank posted a net profit of $415.6 million at 30 June 2016.

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