The REA Group is buying a 19.9% stake in Athena Home Loans, a non-bank lender.
As the parent company of major brokerage Mortgage Choice, REA already provides a white-label product range with Athena called Mortgage Choice Freedom. According to The Adviser, REA is allocating up to $62 million for this transaction, which will fund the purchase of approximately one-fifth of the lender from its existing cash reserves.
The proposed investment is contingent upon regulatory authorization and is anticipated to be finalized within a period of one to two months. Upon completion, REA will secure two seats on Athena’s board.
In a statement regarding the acquisition of a stake in Athena Home Loans, REA Group CEO Owen Wilson outlined the company’s commitment to technological advancements and enhanced value for various stakeholders. The investment, he explained, strengthens their existing partnership with Athena and reinforces their dedication to providing Australian homebuyers with a wider range of options and a smooth experience when searching for and financing properties.
Wilson stressed the importance of a two-pronged approach: broadening their national broker network and refining their digital mortgage services to cater to the millions who visit realestate.com.au. He viewed the equity investment as a springboard to build upon the success of Mortgage Choice Freedom products. Additionally, he envisioned a powerful alliance that would support their overall strategy while also enabling them to tap into Athena’s expanding loan portfolio, providing greater options for their customers.
Nathan Walsh, co-founder and CEO of Athena Home Loans, expressed enthusiasm about the partnership with REA, highlighting its cultural alignment and proven success. He mentioned that REA is part of a strong roster of Athena investors, and they are proud to collaborate with this industry leader to transform home loans for Australians.
Athena initially launched as a digital lender that sold directly to consumers, focusing on helping borrowers avoid paying higher rates for staying with their current lender and paying off their debt faster. In recent years, Athena has started selling through brokers.
In 2023, Athena partnered with Mortgage Choice to offer a new line of Mortgage Choice Freedom loans. These loans have already reached over $1 billion in settlements. Athena also hired a head of distribution to improve their sales through brokers.
Earlier this year, Athena introduced a variety of products for different borrowers. These included products for self-employed people, such as the Self Employed Lite Doc and 80-85 percent loans that don’t require lender mortgage insurance.
These products were launched through partnerships with aggregators LMG and Mortgage Choice, and will soon be available in Athena’s direct channel and on the Mortgage Choice Freedom direct platform on realestate.com.au.
Athena is also working on a range of digital products targeted at broker clients, designed to offer borrowers a fairer, faster, and more favorable experience. To better understand brokers’ needs for the mortgage product suite, the company is hosting co-creation workshops with LMG brokers nationwide, seeking to blend the brokers’ insights with Athena’s advanced technology. Additionally, the lender has announced plans to launch its Non-natural Persons and Trusts product in the near future.
