News Corp firm takes control of Aussie mortgage broker

REA has acquired an 80.3% stake in Australia’s third largest mortgage broker

News Corp firm takes control of Aussie mortgage broker
The News Corp owned firm will enter the mortgage brokerage market with a majority stake in mortgage broking franchise group Smartline, connecting its real estate listings capabilities and around 300 brokers.

Smartline is third in the Australian market behind Mortgage Choice and Aussie, according to Roy Morgan data; settling more than $6 billion in home loans annually with a mortgage book of around $25 billion currently.

The brokerage will retain its branding and will continue to be led by existing management including executive director and founder Chris Acret.

“This is a great fit for both businesses,” Acret commented. “Combining Smartline’s expert mortgage broking franchise and quality network of advisers with REA’s digital expertise and reach is an exciting opportunity for both of us.”

Acret and the existing management will retain 19.7% of the firm.

For REA the deal builds on a strategic partnership with NAB and further strengthens the firm’s move into financing as a key part of buying a home.

“We’re excited to be moving into the mortgage broking market with Smartline. Combining the expertise of both teams will help us build the best property search and finance offering for Australians,” said REA Group CEO Tracey Fellows. 

The combination makes sense for both firms involved according to Norman Morris, industry communications director at Roy Morgan Research.

“News Corp’s move into mortgage broking via a controlling interest in Smartline, is a logical extension of its real estate classifieds business. With over two million current mortgage holders having obtained their loans through a mortgage broker, representing an increase of 650,000 over the last ten years, this market offers enormous potential for the number three player.”

The online presence of REA works well with Smartline’s customer profile as  88.9% of its customers do one or more banking and finance activities online in an average four week period, well above the mortgage broker customer average of 77.3%.