Major mortgage aggregator AFG grew its overall loan book by 7% in the 2016 financial year, reporting a big lift in non-major market share.
Loans settled by the non-majors grew to almost a third (29.1%) of AFG’s loan book, with AFG’s general manager of sales and operations, Mark Hewitt
, calling this a “pleasing” result. AFG’s own white label AFG Home Loans products generated a market share of 7.2% for the final quarter.
Growth in the aggregator’s loan book was driven by the traditional powerhouse states of Victoria and New South Wales, with volume in those states up 16.6 % and 12.2% respectively over the financial year.
South Australia was up 12.2% for the financial year and Queensland recorded a lift of 4.2% on the previous financial year. However, a drop of 13.4% in Western Australia was not unexpected as the state comes to terms with life post-mining boom.
The refinancing market also saw a boost over the year, with those looking to refinance increasing from 37% of AFG’s loans processed for the financial year to 38%.
“This result is reflective of the high level of competition amongst lenders in this low interest rate environment,” Hewitt said.
“With interest rates at record lows, Australians are quite rightly checking in with their mortgage broker to ensure they are not paying too much for their home loan.”
The number of people choosing to stay in their homes and upgrade rather than move is also at historical highs, closing out the financial year at 33% of AFG borrowers.
Hewitt said the overall result was as forecast by AFG when they released their prospectus last year, and the aggregator is pleased with the growth given a backdrop of uncertainty.
“The numbers are strong despite a turbulent run in to the end of the financial year and the longest election campaign in memory finally coming to a close,” he said.
“Talk of negative gearing changes and changes to investment lending has seen many homebuyers sit on their hands.”