Bendigo and Adelaide Bank has acquired a A$1.35 billion portfolio of mortgages from the Western Australian Government's low-deposit home lender Keystart.Bendigo and Adelaide will pay a 0.2 per cent premium for the portfolio, which is made up of owner-occupier variable rate loans, with an average loan size of $225,000, an average loan-to-valuation ratio of 84 per cent and an average age of 64 months.Keystart, which was established to assist people who do not have sufficient savings for a deposit, will continue to service the loans for the bank. Keystart's total book is worth $4 billion.Bendigo and Adelaide Bank managing director Mike Hirst said in a statement that the acquisition improved the bank's geographic diversification and gave it the opportunity to offer products to 6000 Keystart borrowers.Hirst said Keystart customers had a good record of repaying their loans. He said the transaction would be ROE accretive for the bank.The bank is buying a book of loans that will boost its margin. Rates on Keystart loans are around 5.2 per cent to 5.3 per cent, compared with Bendigo's package rate of around 4.2 per cent.