Brokers in one state are seeing an uptick in business, with borrower demand for broker-sourced loans hitting an all-time high.
New figures from AFG show Victoria recorded a record month for broker-sourced loans in July. The aggregator processed $1.09bn in home loans for Victorians in July, the first time a state outside NSW has ever cracked the billion dollar mark. The result represents a massive 44% increase on the same period last year.
"Victoria has traditionally been the state with the lowest use of brokers, but this is starting to change," AFG general manager of sales and operations Mark Hewitt
said. "With increasing competitiveness and complexity in the mortgage market, we are seeing a marked shift in borrowers using brokers to help them find the best deal. The resilience of the Victorian market, defying concerns about high-rise over-supply, is another factor underpinning mortgage demand there."
While Victoria led the surge in broker demand, other states showed strong growth as well. Demand in WA was up 21.2% year-on-year, while demand in NSW rose 12.8%. Queensland also saw a strong increase, at 11.6%.
Overall, AFG said it processed $4.1bn in home loans in July, the aggregator's second biggest month since the record $4.2bn in May and a 21% increase on last year.