By Gareth Vaughan

As Resimac, one Australian mortgage lender launches in New Zealand, another says it currently has no plans to follow suit and cross the Tasman Sea to take on the local subsidiaries of the Australian banks.

Wealth manager Yellow Brick Road, chaired and part owned by Wizard Home Loans founder Mark Bouris, has just announced "an assault on the banking sector" in Australia with funding from Macquarie Bank.

Bouris says the venture is about bringing back choice, access and competition like there was in the 1990’s.

"Plenty of commentators, including politicians, talk about the need for competition, but there is only one way that is going to happen and that is Yellow Brick Road taking the initiative. This is a game changer that will take the big four (banks) head on," says Bouris.

He announced Yellow Brick Road’s "opening move" as a 1.15% annual discount off its base rate of 6.65% for the first 12 months on residential home loan products. After that, a discount of up to 0.86% is guaranteed for the life of the loan. According to Bloomberg the Yellow Brick Road offer undercuts the average 0.75% reduction offered by the Australian banks.

This comes with Yellow Brick Road having signed an origination agreement with Macquarie Bank to develop branded banking and wealth management product and services, including the terms of a new mortgage funding and distribution arrangement.

Bouris and his fellow Wizard shareholders sold to GE Money in 2004 in a deal the Sydney Morning Herald said was valued at more than A$500 million. Wizard did establish a new Zealand presence, although this was shut down by GE in late 2008.

Asked whether Yellow Brick Road had any plans or ambitions to bring its products and services to New Zealand, Yellow Brick Road spokeswoman Chelsea O'Donnell said: "Not at the moment, unfortunately."

The company offers home loans, commercial loans, financial planning, insurance, superannuation, investments, accounting and tax services. It has an extensive branch network and listed on the Australian Stock Exchange in July 2011. Bouris owns 27% of the company, TV's Channel 9 20% and other senior managers also have stakes.

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