Australian Finance Group (AFG) has ramped up its investment push, taking a non-controlling stake in Loan Path Finance – its third brokerage investment in a year. The move signals a new wave of consolidation in Australia’s greater mortgage broker market.
Under the terms of the deal, AFG will acquire a 28% non-controlling equity stake in Sydney-based brokerage Loan Path Finance. While it marks AFG’s third investment since launching its Broker Investments program in November 2024, it is the company’s first equity partnership outside its existing broker network. The financial terms of the Loan Path Finance investment have not been disclosed.
AFG had eyes for the boutique brokerage, thanks to its strong growth trajectory. Under the terms of the deal, it will remain independently managed, but will operate with AFG as its majority shareholder. The investment forms part of AFG’s new broker equity partnership strategy, which the company says is the first of its kind among Australian mortgage aggregators.
In November 2024, AFG first revealed plans to put its balance sheet to work by investing directly in high-growth broker businesses.
Regarding the Loan Path investment, AFG chief executive officer David Bailey said: “We’re focused on long-term partnerships with businesses that meet key criteria around size, model and growth potential – each tailored to the unique ambitions of individual brokers. Our investment in Loan Path Finance highlights the strong market demand for this kind of support, extending well beyond our existing network.”
Loan Path Finance, which was founded in 2019, provides both residential and commercial lending solutions, with a focus on high-net-worth and self-employed clients. Led by managing director Mina Gergis, the brokerage previously operated under the outsource Financial aggregation network but has now transitioned to AFG as part of the equity transaction.
“Our vision has always been to deliver tailored, high-impact lending solutions with a premium service experience," Gergis said. "AFG’s investment allows us to deepen that mission and scale with strength, while maintaining the independence and culture that define us.”
The latest deal is part of AFG's expansion plans within its broker network. In January, the aggregator invested in two firms: Melbourne-headquartered Empower Wealth Group and Western Australia-based Lifespan Mortgage Services.
AFG’s investment in Loan Path comes amid a wave of M&A activity in Australia’s financial services sector, as firms increasingly join forces in response to the rising dominance of mortgage brokers. Brokers now write 76.8% of all new residential home loans, according to the Mortgage & Finance Association of Australia (MFAA), a figure that continues to climb.
By taking equity stakes in broker businesses, AFG is not only providing capital and strategic support to help them scale, but also aligning its long-term interests with those of its broker partners. In addition, the move reflects a broader trend toward consolidation across the industry, as aggregators and brokerages seek greater strength and stability in a highly competitive market.
Tie-ups in 2025 alone – or proposed merger activity – include Bank of Australia and Qudos Bank; G&C Mutual Bank and Unity Bank; Auswide Bank and MyState Bank Limited; Teachers Mutual Bank Limited (TMB) and Australian Mutual Bank Limited (AMB); and Regional Australia Bank and Summerland Bank. In addition, earlier this year it was reported that non-bank lender La Trobe Financial's parent company Brookfield financial was enlisting help for a potential sale of the brand. Brokerages aren't sitting still either. Sydney-based mortgage brokerage Lydian Finance made a strategic equity investment in Victoria-based brokerage Clark Finance Group in March.
For brokers, the AFG-Loan Path deal signals a shift in how aggregation groups are positioning themselves in a competitive lending landscape. Rather than acting solely as service providers, aggregators like AFG are increasingly becoming direct investors in broker businesses. That shift could provide a lifeline for brokers navigating succession challenges, funding needs or market volatility, while retaining their autonomy and branding.
