A multi‑year exit from the RAMS brand has been sealed, shifting a multibillion‑dollar mortgage book into non‑bank hands.
Westpac has completed the sale of the RAMS residential mortgage portfolio to a consortium led by Pepper Money, drawing a line under its ownership of the brand.
The deal, which formally closed on Monday (3 August), transfers a $15.4 billion portfolio of RAMS mortgages to a consortium comprising Pepper Money, credit funds and accounts managed by KKR, and PIMCO-managed funds.
The book was worth $21.4 billion when Westpac signed a binding agreement with the consortium in early November 2025, with the balance running down through regular repayments ahead of completion.
The transaction stems from preliminary discussions first disclosed by Pepper Money in late October 2025 and marks one of the largest mortgage portfolio disposals undertaken by an Australian major bank.
Westpac said its common equity tier 1 capital ratio had risen by about 23 basis points as a result, although it will record a loss on sale once transaction costs and other adjustments are taken into account.
Westpac managing director of home lending James Hutton framed the completed sale as part of a broader repositioning.
“The completion of this transaction further simplifies Westpac and reflects our ongoing focus on becoming a simpler, stronger bank delivering great outcomes for our customers,” he said.
“Throughout the transition our priority has been supporting RAMS customers and ensuring a smooth transition to Pepper Money. I’d like to thank our customers and employees for their support.”
End of the RAMS era – and a scale play for Pepper
Westpac bought RAMS in 2008 for $140 million, but shut the RAMS franchise network to new lending in 2024.
The Federal Court in late 2025 handed RAMS a $20 million penalty for systemic compliance failings, including the use of unlicensed referrers, poor conflict management, and falsified income documents in some applications.
For Pepper Money and its partners, the acquisition is another significant step in building fee‑based mortgage servicing scale.
In an ASX announcement confirming completion, Pepper said the transaction advanced its “strategy to grow its capital-light servicing business, which provides annuity-style earnings, operational scale and diversification benefits”.
The timing also places Pepper at the centre of some of the largest mortgage trades the market has seen, with the RAMS deal closing just days after Blackstone agreed to buy HSBC’s $36 billion Australian home loan portfolio, on which Pepper will act as loan management partner.
[Related: Westpac sells RAMS portfolio to Pepper consortium]
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