National Australia Bank is in advanced discussions to purchase mortgage broker Wizard.
National Australia Bank (NAB) has stepped up its plans to buy mortgage broking firm Wizard.
The bank is in the final stages of buying Wizard's distribution network as well as up to $4 billion of its prime mortgages.
"The acquisition of Wizard would progress the NAB retail strategy of providing customers with products and services that match their individual needs using a multi-brand approach," a statement from the bank said.
NAB said the proposed purchase would have a minimal impact on its capital and funding plans.
The bank said the funding requirement associated with the mortgage portfolio under negotiation can be accommodated within its previously announced funding plans for the 2009 financial year.
Wizard was established in 1996 and since then has grown a network of over 150 branches across Australia.
The mortgage portfolio includes prime mortgages with a maximum loan-to-valuation ratio of 90 per cent and is 100 per cent mortgage insured.
NAB's foray into the mortgage business is consistent with Westpac's purchase of the RAMS brand and distribution as well as the Commonwealth Bank's stake in Aussie Home Loans.
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