RAMS Mortgages Move to Pepper Money: What You Need to Know

Westpac has completed the $15.4 billion RAMS mortgage sale to a Pepper Money consortium, transferring a major mortgage book to non-bank hands.

On Monday 3 August 2026, Westpac formally completed the sale of the RAMS residential mortgage portfolio. If you hold a RAMS home loan, your loan is now serviced by a consortium comprising Pepper Money, credit funds and accounts managed by KKR, and PIMCO-managed funds.

The deal, reported by The Adviser, is one of the largest mortgage portfolio disposals undertaken by an Australian major bank. The portfolio transferred at $15.4 billion. That figure had run down from $21.4 billion — the balance when Westpac signed the binding sale agreement in early November 2025 — through regular repayments in the months before settlement.

This change is significant for RAMS customers, and it warrants a clear explanation.

What Has Actually Changed for RAMS Borrowers

In practical terms, Pepper Money is now the entity responsible for servicing your loan. Westpac managing director of home lending James Hutton acknowledged the transition in his statement confirming completion: "Throughout the transition our priority has been supporting RAMS customers and ensuring a smooth transition to Pepper Money."

Loan terms and conditions should not have changed as a result of the sale. The transfer of a mortgage book between entities is a normal commercial transaction in the Australian lending market, and borrowers' legal rights under their original loan contracts carry over to the new servicer. If you are uncertain about any aspect of your loan, contacting Pepper Money directly to confirm your details is a sensible step.

For Westpac, completing the sale boosted its common equity tier 1 capital ratio by approximately 23 basis points. The bank will record a loss on sale once transaction costs and adjustments are factored in — a balance sheet consideration that does not directly affect existing borrowers. Hutton described the outcome as part of a deliberate strategic direction: "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."

The End of an Era for RAMS

Westpac acquired the RAMS brand in 2008 for $140 million. It shut the RAMS franchise network to new lending in 2024 following a period of strategic review. In late 2025, the Federal Court imposed a $20 million penalty on RAMS for systemic compliance failings — including the use of unlicensed referrers, poor conflict management practices, and falsified income documents in some loan applications.

The completed portfolio sale draws a clean line under Westpac's involvement with the brand. For the borrowers whose loans form the $15.4 billion book, the brand name has changed but the underlying obligation has not. Your repayments, interest rate, and loan structure remain as contracted.

Pepper's Growing Role in the Australian Mortgage Market

For Pepper Money and its partners, the RAMS acquisition is a significant scale play in mortgage servicing. In its ASX announcement confirming completion, Pepper described the transaction as advancing its "strategy to grow its capital-light servicing business, which provides annuity-style earnings, operational scale and diversification benefits."

The timing places Pepper at the centre of two of the largest mortgage portfolio trades the market has seen in rapid succession. The RAMS deal closed just days after Blackstone agreed to acquire HSBC's $36 billion Australian home loan portfolio, with Pepper named as loan management partner for that book as well. Taken together, these transactions make Pepper one of the dominant non-bank mortgage servicers in Australia by book size managed.

For the broader market, these deals signal ongoing consolidation in non-bank mortgage servicing. Large, established servicers bring operational infrastructure and compliance resources that smaller operators cannot match — which, for borrowers, generally means continuity of service standards during the transfer period.

What You Should Do If You Have a RAMS Loan

A change in loan servicer is a natural prompt to review whether your current home loan product is still working hard for you. Many RAMS customers originated their loans during a rate environment that was quite different from today's. The market currently features more than 44 lenders offering variable rates below 6%, with active pricing competition across lenders of all sizes.

If you have not reviewed your rate and loan structure recently, now is a reasonable time to do so. Check that your loan includes the features you need — such as offset accounts and redraw — and compare your current rate against what is available in today's competitive market.

Our cheapest home loan comparison shows current pricing across lenders, and the refinance savings calculator can help you estimate what switching could mean for your monthly repayments. If your RAMS loan covers an investment property, our investor home loan comparison is worth reviewing given recent changes to the tax treatment of investment properties.

Regardless of the servicing change, the key question remains the same: is your loan still the right product for your circumstances? If you are not sure, an independent review can help clarify your options.