Australian Finance Group write record-breaking $19.9 billion worth of loans in December quarter

Australian Finance Group secured a record-breaking December quarter with more than $19.9 billion of home finance lodged by AFG brokers.

AFG CEO David Bailey advised the national figure represented an increase of 9.5% on the prior quarter and a 30% increase on the corresponding quarter in 2019.

But the percentage of investor loans remained at an all-time low of 21%.

Some 42% of lodgements were for those upgrading their homes.

With government incentives, first home buyers represented 22% of lodgements, triggering a record high loan to value ratio of 73% due to the high proportion of first home buyers who typically have smaller deposits.

Overall the broker saw gains across the country lead by Victoria up 18% and Western Australia recording a 13.3% jump on Q1 2021. 

New South Wales up 3.5% for the quarter, Queensland up 7.8%, South Australia up 0.4%. 

The Northern Territory recorded a drop of 10%.

The average loan size was also at record levels, coming in at $544,359 for the quarter.

A record 88% took a principal & interest product over an interest only loan. 

The average loan size was also at record levels, coming in at $544,359 for the quarter.

“The market is well aware that low interest rates are likely bottoming out and this has seen the percentage of customers choosing a fixed rate product still high at 29.2%,” Bailey said.

With the four big banks leveraging their funding advantage through very competitive pricing and cash back offers, smaller lenders’ share of the market remained at 41%.

The Westpac stable of brands – Westpac, BOM, BankSA and St George – have increased their combined market share of AGF loans by 2.5% to be sitting at 18.7% while CBA group – CBA and Bankwest – dropped 4.7% to now be holding 20.7% of the market.