MENU

Macquarie wants your home loan!

Macquarie Group (ASX: MQG) has seemingly spent the past few years in the wilderness, having been forced to re-evaluate and rejig its business model for a post-GFC world. It appears the diversified investment bank is re-emerging with renewed confidence and a plan to grab a greater share of the Australian home loan market.

Last week, with surprisingly little fanfare, Macquarie purchased 19.8% of Homeloans (ASX: HOM). Homeloans has a market capitalisation of $100 million and provides mortgage origination primarily through mortgage brokers. Interestingly, Macquarie purchased its stake from Challenger  (ASX: CGF) who presumably has decided it was a non-core investment. Any ambitions Macquarie has to grasp control of Homeloans however, are going to depend on the National Australia Bank (ASX: NAB), who owns 17.8% of the company as well.

Macquarie’s jockeying for position to snare more of the lucrative home loan market has also seen it recently do a deal with Mark Bouris and his listed venture Yellow Brick Road (ASX: YBR). Meanwhile Commonwealth Bank of Australia (ASX: CBA), which is the largest home lender in the Australian market with a 25% market share has recently purchased the remaining 67% of Aussie home loans that it didn’t already own.

One this is for sure — the big 4 banks won’t be giving up market share without a fight. However, with the home loan market estimated at $1.1 trillion and the 4 big banks controlling the lion’s share of the market, there is certainly opportunity for smaller players to grab a larger slice of the pie.

Foolish takeaway

Incredibly many people spend more time researching and shopping for a jumper, a car or a home loan than they would an investment opportunity. At Motley Fool we know there is no gain without pain! That’s why we painstakingly research and analyse investment opportunities to determine their risks and potential rewards.

Two promising small companies are still flying under the radar. Discover these two exciting ASX investments in our brand-new special FREE report, “2 Small Cap Superstars”. Click here now, it’s free!

More reading

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.  This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.