Commonwealth Bank of Australia Ltd (CBA) will buy a 33 per cent interest in mortgage broker Aussie Home Loans.

CBA chief executive Ralph Norris says the minority stake was a strategic investment and will give the country’s largest home loan lender a stronger foothold in the mortgage market.

“As Australia’s largest home loan provider, it makes good strategic sense to look at alternative investments in this industry that will continue to bring benefits to shareholders and consumers,” Mr Norris said.

“The Australian mortgage and housing industries are the backbone of the economy and the purchase of a home remains the largest single investment made by many consumers.”

Mr Norris noted that many consumers sought the advice of mortgage brokers when selection a home loan.

“As this market continues to develop, a strategic investment in one of the market leading providers in this industry is a natural fit for the group,” he added.

CBA said it expects Aussie to maintain and build on its existing position in the mortgage supply and broker markets.

Aussie will continue to be an independently managed and run but its founder, John Symond.

CBA will have a minority representation on the Aussie board and management involvement in the day to day running of the company.

AAP