AFG brokers write new record loan amount

Market share rises and property boom unite to set new high watermark for channel

AFG brokers write new record loan amount


By Mike Wood

Aggregator AFG has announced new record volumes of loans written by their brokers in the 2021 calendar year, with $24.6bn in residential lodgements in the last three months of the year.

The numbers reflect the rise in broker market share to record levels in late 2021, combined with increases in the number of refinances and the size of the average mortgage, which has gone up to $624,000.

Australian borrowers are also departing from the traditional Big Four lenders, with brokers offering a wider range of options to clients.

AFG reported that the market share of the Big Four had dropped by almost 4% from 57.31% to 53.55%, one of the lowest levels of the last decade.

“The latest AFG Index out today has shown that AFG brokers finished the 2021 calendar year in high demand, with the company lodging $24.6 billion in residential home loans for the final three months of 2021,” he said.

“The record volumes across the country revealed residential lodgements were up 24% on the same period last year.

“Australian home buyers are making the most of a competitive market with non-majors’ share increasing again this quarter to 46.5%.

“Many of the trends seen at the start of 2021 have continued with refinancers now representing 25% of all mortgages, up from 22%. Although not back at pre-covid levels, Investment loans have jumped 5% to 26% in Q2.

“In addition, it appears lender turnaround times have steadied and are tracking at 21.8 days for the past two quarters. 

“AFG also reports that Australian home buyers’ ‘brief romance with fixed rate products’, fueled by the short-term funding advantages provided to the ADIs, appears to be waning with the number of people choosing to fix their interest rates falling from 38.2% in the prior quarter to 34% for Q2 FY22.

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