NAB is staying quiet on the deal, but it is understood that the deal has a few options. Either to take Wizard's distribution business, which includes an estimated 170 branches, and pay less than $100 million for the business and the brand. Or, negotiate to take its $12 billion loan book, and pay significantly more.
``The big question is whether Mark Bouris (the founder of Wizard) will retain a role and whether NAB will buy the distribution or the $12 billion loan book,'' an insider said.
The sale would accelerate the lessening of competition and further consolidation in the banking sector, as non-bank lenders such as RAMS Home loans and Aussie Home Loans get sold to the big banks.
Mr Bouris has been a loud critic of the banks in recent years, and is currently chairman of Wizard earning more than $1 million a year.
Wizard captures a mortgage market share of more than 2 per cent.