AFG set a new record in March, processing the biggest monthly volume for the company in its 21 years in business.
The mortgage manager processed $5.2 billion in mortgages over the month, smashing its previous record, set in October 2014, by 10.6%. The $5.2 billion figure also represents a 29% increase on March last year and equates to a total of 11,235 mortgages in one month.
AFG now holds approximately 10% of the total Australian mortgage market.
Volumes were particularly strong in NSW, which recorded a 47% increase on March 2014 ($1.9 billion processed) and VIC, where a 30% greater volume was processed ($1.2 billion). Increases reported for other states were SA (23%), QLD (16%) and WA (11%).
AFG also broke a new record for investor loans in March. Loans to property investors equalled 41.7% of all mortgages. The mortgage manager says this was driven by especially strong activity in NSW, where 52.9% of all mortgages were processed for investors.
According to Mark Hewitt
, AFG’s general manager of sales and operations, the overall growth in volumes wasn’t reflective of all states.
“What happened in March is really the story of Sydney and Melbourne. Volumes in other cities were strong but unspectacular,” he said.
“The combination of rate expectations, with a traditionally buoyant month for property sales, made March a stand-out month.”
AFG’s data also revealed that first home buying is still at very low levels. First home buyers accounted for 7.4% of loans processed nationally, but the figure was much lower in NSW where first home buyers comprised just 2.4% of new borrowers. In SA, 4.6% of new borrowers were first home buyers, while in QLD, 5% were first home buyers.