The Australian Competition and Consumer Commission (ACCC) has announced it will not oppose the Commonwealth Bank’s proposed acquisition of a majority stake in Aussie Home Loans (AHL).

Under the deal, CBA will up its 33 per cent stake in AHL to 100 per cent complete ownership.

"In reaching its view, the ACCC took into account the competitive constraint arising from the presence of a number of alternative suppliers of home loan products and mortgage distribution services," ACCC Chairman Rod Sims said.

While Aussie Home Loans franchisee brokers will still wish to offer home loans from a range of lenders, Commonwealth Bank is likely to have the ability and incentive to increase the volume of, for example, “white label” home loan products (financed by Commonwealth Bank and rebranded as Aussie Home Loans) supplied through the Aussie Home Loans network.

However, the ACCC concluded that this would not give rise to a substantial lessening of competition; Aussie Home Loans brokers make up only around 6% of Australia’s mortgage brokers, and there are many other distribution channels through which lenders can access brokers and borrowers.