Brokers strike back with October record

by BN06 Nov 2012

A leading aggregator has seen its broker network eclipse all previous monthly mortgage volume records as far back as March 2009.

Australian Finance Group processed $3.1 billion in mortgages in October, the highest October on record and a sharp 25% jump on the volume recorded during the same month last year.

The aggregator also bucked a trend that usually sees September followed by a quieter October, with a 14.6% jump in mortgage processing volumes when measured month-on-month.

General manager of sales and operations Mark Hewitt said the figures did not mark a surge of confidence across the country, but instead a resurgence of different categories of borrowers in different states that were becoming more comfortable with taking out new mortgages.

For example, loans for investors in New South Wales soard to 43.1% of all new lending in the state, while in Western Australia, first home buyers accounted for 25.2% of all new loans.

AFG figures indicate that refinancing was not the driver for mortgage volumes during the month of October, with the level of refinancing at its lowest level since September 2009.

In a further indication of rising confidence, average loan to value ratios rose to 70.5%, the highest level since September 2009. Fixed rate loans continued to represent about one in five new loans.