AFG brokers lodge the largest volume quarter on record.
Australian Finance Group Ltd (ASX: AFG) quarterly residential lodgement volume exceeded $25 billion for the three months ending December 2024. This surge in activity resulted in a record half-year residential lodgement total of $49.4 billion for the company demonstrating the ongoing growth and productivity of its broker network.
AFG Chief Executive Officer David Bailey explained the results: “AFG brokers have once again demonstrated their position as the preferred choice for Australians seeking competitive home loan rates and expert assistance in navigating the lending market.”
“The first half of FY25 saw an 18% increase compared to the same period last year and a 4% increase on the September 2024 quarter. A healthy property market, strong employment and migration, and stable interest rates, has created an environment of confidence to borrow. This level of lodgements hasn’t been observed since early 2022,” he said.
Driven by increased activity across the country, the AFG Index shows both Western Australia and South Australia recorded their largest volume quarters on record. “Queensland was the only state to show a slight dip in activity, down 1.9% on the prior quarter, but that is still up 21.4% on the same period last year,” said Mr Bailey.
The surge in activity has also coincided with the largest average national loan size on record at $674,284. Loan to Value Ratio is still historically low despite increasing loan sizes. New South Wales has once again emerged as the most expensive state for homebuyers, with the average mortgage size climbing to $804,629.
Investors continued their return to the market, with lodgements at 33% of all flows, achieving the highest percentage of investment loans since the second quarter of 2017. The quarter also recorded the lowest percentage of refinancing activity since Q3 of 2022.
Major lender market share was up 5.1% for the quarter to 61%. “With the completion of the acquisition of Suncorp by ANZ late last year, Suncorp’s data is now included in the Major category of the AFG Index, accounting for just over half of the lift in market share for the country’s Big 4 lenders and their associated brands.”
“AFG Home Loans market share softened slightly to 6.6% due to competitive market conditions with 56% of this tied to AFG’s own funded AFG Securities products,” Mr Bailey said. “That environment is now stabilising and as we head into the new year, AFG Home Loans is well positioned to once again be at the forefront as a compelling alternative to the major banks. Although the white label aspects of AFG Home Loans remain challenging, we are pleased with the growing footprint of our AFG Securities products.”
“Despite record volumes, Lender Turnaround Times have improved once again and are at their lowest level since we have been reporting on this metric. It is currently taking an average 14.8 days from submission of the loan application to the lender providing formal approval.”
“As we head into the second half, record lodgements, strong recruitment and new technology positions AFG as the aggregator of choice to support our brokers,” he said. “Brokers will continue to be the channel of choice, driving competition and providing a vital service to homebuyers across the country.”
