Commonwealth Bank is taking control of John Symond's Aussie Home Loans.
Australia's largest home lender, CBA already had a 33 per cent stake in the 20-year old mortgage broking business, and will increase its interest to 80 per cent, the bank announced on Tuesday.
CBA will also have the right to take complete ownership of the business, it said.
The financial terms of the deal were not released.
"We recognise the strength and reputation of the Aussie brand and name in the Australian mortgage market and also the importance of broker distribution of home loans and other financial products," CBA's executive of strategic development Rob Jesudason said in a statement.
"We are delighted to increase our investment in Aussie and continue the relationship between the Commonwealth Bank Group and Aussie."
Aussie was established by Mr Symonds, and now lends $38 billion to over 250,000 customers.
CBA's takeover remains subject to clearance from the Australian Competition and Consumer Commission.
Mr Symond will remain Aussie's executive chairman, and Mr Jesudason said it would be business as usual for Aussie customers after CBA takes control.