Wizard puts away its wand

Wednesday 17th December 2008

Non-bank lender Wizard Home Loans is closing down its New Zealand operations, while its Australian business is being sold to National Australia Bank.

Wizard is a franchised business in New Zealand with around 30 office. It has previously claimed to be one of the fastest growing lenders in the country.

Wizard's owner, GE says, the decision to close the business in New Zealand was made reluctantly.

It announced in May that it was looking for a buyer or strategic partner, however it failed to find one.

As previously reported on Good Returns, Wizard said the home loan business was difficult because of funding costs and market volatility.

GE Money will continue to service all existing loans in the normal way. Wizard branches in New Zealand will cease writing new business at a date to be determined in discussions with the branch licensees.

"This was a difficult decision, and no reflection on the tremendous contribution made by the Wizard management and employees who have shown great loyalty to the brand and the business," said GE Money Australia and New Zealand chief executive Mike Cutter.

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