Mortgage Aggregator vs Broker vs Bank — What’s the Difference? (2026)
When researching home loans, you may encounter the terms mortgage aggregator, mortgage broker and bank — sometimes used interchangeably, but they are very different things. Understanding each role helps you know who you are dealing with and why.
The Three Roles — Quick Summary
| Mortgage Aggregator | Mortgage Broker | Bank / Lender | |
|---|---|---|---|
| What they do | Infrastructure and licensing for brokers | Find and arrange loans for borrowers | Fund and originate loans |
| Who you deal with | Never (back-of-house) | Yes — they face the borrower | Yes — direct channel |
| Holds the credit licence? | Yes (ACL) | Usually operates under aggregator’s ACL | Holds ADI licence (APRA) |
| How they make money | Commission split from brokers | Commission from lenders | Interest on loans |
| Regulated by | ASIC (NCCP Act) | ASIC (NCCP Act) | APRA + ASIC |
What Is a Bank (Lender)?
A bank or lender is the institution that actually funds your mortgage. When you borrow money to buy property, the bank provides the funds — and you repay principal and interest over the loan term.
Banks include:
- Big Four: Commonwealth Bank (CommBank), ANZ, Westpac, NAB
- Mid-tier banks: ING, Macquarie Bank, Bendigo Bank, Bank of Queensland, HSBC Australia
- Mutual banks and credit unions: Bank Australia, Teachers Mutual, People’s Choice
Non-bank lenders (such as Firstmac, Liberty, Pepper Money, Resimac) originate and fund loans but are not regulated as Authorised Deposit-taking Institutions (ADIs) by APRA. They are still regulated by ASIC under the NCCP Act.
You can borrow directly from a bank or through a mortgage broker who submits your application to the bank on your behalf. The bank’s credit policies, interest rates and product features are the same either way.
What Is a Mortgage Broker?
A mortgage broker is a licensed intermediary who helps you find, compare and apply for a home loan. The broker faces the borrower (that’s you) — gathering your information, comparing options from their lender panel, and managing the application through to settlement.
Mortgage brokers in Australia must hold (or operate under) an Australian Credit Licence (ACL) issued by ASIC. Most brokers do not hold their own ACL — they operate as authorised credit representatives under an aggregator’s ACL.
The broker is your primary point of contact throughout the home loan process.
What Is a Mortgage Aggregator?
A mortgage aggregator is the infrastructure company that sits between brokers and lenders. The aggregator:
- Holds the Australian Credit Licence (ACL) under which brokers operate
- Provides technology platforms (CRM, loan comparison tools, application submission systems)
- Maintains and manages lender accreditations — negotiating panel access so brokers can submit applications to multiple lenders
- Provides compliance, training and legal support to brokers
- Takes a share of commissions the broker earns (typically 10–20%)
As a borrower, you never deal with an aggregator directly. They are a back-of-house operation.
Australia’s Major Aggregators
| Aggregator | Estimated broker network |
|---|---|
| AFG (Australian Finance Group, ASX:AFG) | ~3,800 brokers |
| Connective | ~3,600 brokers |
| FAST | ~1,000 brokers |
| Vow Financial | ~600 brokers |
| PLAN Australia | ~600 brokers |
| Choice Aggregation | ~600 brokers |
| Loan Market Group | Includes Loan Market broker brand |
Most major aggregators are now owned by or closely connected to larger financial conglomerates. For example, Loan Market Group is affiliated with Ray White Real Estate. AFG is ASX-listed.
How the Three Layers Connect
Here is how a typical home loan flows through the system:
Borrower
↓ (works with)
Mortgage Broker
↓ (operates under licence of / submits applications through)
Aggregator
↓ (routes application to lender)
Bank / Lender
↓ (funds the loan)
Borrower
Commission flow (after settlement):
Lender pays commission →
Aggregator receives and splits →
Broker receives their share (typically 80–90%)
Broker-Owned vs Aggregator-Employed Models
Most brokers are independent small business owners who pay the aggregator for access to their licence, technology and lender panel. However, some aggregators also directly employ brokers.
Similarly, some large franchise groups (like Mortgage Choice) operate as both an aggregator and a broker brand — franchise owners are brokers who operate under the Mortgage Choice brand and systems.
What the Aggregator Does That You Benefit From (Indirectly)
You may never know which aggregator your broker uses — but it affects:
- How many lenders your broker can access: Aggregators with more lender accreditations give brokers access to more products
- Technology: Better aggregator platforms mean more efficient applications and faster processing
- Compliance: Aggregators must ensure their brokers comply with ASIC rules — they have a financial incentive to do so (they share liability as the ACL holder)
Frequently Asked Questions
Should I ask my broker which aggregator they use?
You can, but it rarely affects your experience as a borrower. The more useful questions relate to the broker’s lender panel size and their individual qualifications and experience.
Is my agreement with the broker or the aggregator?
Your Credit Guide and Credit Proposal Disclosure will name both — typically the broker as your credit representative and the aggregator as the ACL holder. Complaints can be directed to either.
What happens if the aggregator goes under?
In practice, the broker would move to a different aggregator. Your existing loan is with the lender — not the broker or aggregator — so your loan terms are unaffected.
Can a bank be its own aggregator?
No — banks originate loans and are regulated by APRA as lenders. Aggregators are ASIC-regulated credit intermediaries. A bank may own a broker brand or franchise network (e.g., CBA owns Aussie Home Loans), but the aggregation function is distinct from banking.
Related Guides
- How Mortgage Brokers Work
- Mortgage Broker vs Bank
- How Are Mortgage Brokers Paid?
- Mortgage Broker Best Interests Duty
- Mortgage Brokers Hub
This article provides general information about the roles of mortgage aggregators, brokers and banks in the Australian home loan market. It is not personal financial or credit advice. Find a licensed mortgage broker through MoneySmart.