REA Group has made its move into home financing by buying a majority stake in mortgage broker Smartline and securing a broking partnership with National Australia Bank.
The News Corp-controlled group announced on Tuesday it will acquire an 80.3 per cent slice of Smartline, which has 300 advisers and a $25 billion loan book, for $67 million.
The remaining 19.7 per cent shareholding will be retained by the existing management team but could be up for grabs in the future, REA said.
The realestate.com.au owner also announced it has teamed up with National Australia Bank to offer consumers access to the lender's broking service.
The group will launch realestate.com.au Home Loans this year in a bid to make its business a one-stop-shop for property buys, sales and financing.
The partnership, part of a strategic plan announced in December 2016, will allow consumers to access home loans from NAB, plus a realestate.com.au own-branded product.
The acquisition and the partnership are expected to contribute, net of broker commissions, between $26 million to $30 million in full-year revenue in 2018, REA said.
It estimates an earnings contribution of between $7 million and $11 million for the same period.
The digital real estate advertiser's revenue hit $337.3 million, up 16 per cent, in the six months to December 31, while its net profit more than doubled to $292.1 million.
REA chief executive Tracey Fellows said providing a broker solution will boost the financial services the company is building for consumers.
"These investments allow us to enter a new market with two of the industry's most trusted and successful mortgage broking operations," Ms Fellows said in a statement.
"It's about giving people greater choice when selecting the right home loan for them."
NAB executive general manager Anthony Waldron said consumers will also find it easier to access online advice and guidance from a mortgage broker .
"Customer preferences are changing and we must be prepared to adapt to the growing demand for digital services,"Mr Waldron said.
"Home buyers start their property search online and so this is a natural extension of that journey."
REA shares were down 0.34 per cent at $66 at 1445 AEST.
