This article is from the Australian Property Journal archive
BROKER Australian Finance Group (AFG) lodged $20 billion in home loans in the third quarter of the 2024 financial year, with a record number of homebuyers seeking out mortgage brokers amidst a challenging economic landscape.
AFG recorded a 4.7% increase in lodgements on the same period in the year prior, led by Queensland with a 10.45% increase in activity, with South Australia up 13.24%, WA up 6.78%, NSW up 3.86% and Victoria up just 0.34%.
“The AFG Index for the third quarter of the 2024 financial year has recorded an uptick in lodgements across all states on the same period last year,” said David Bailey, CEO at AFG.
“Victoria’s sluggish result is likely driven by the burden of recent land tax changes aimed at property investors in that state.”
The AFG Index data comes as latest industry statistics released by the Mortgage & Finance Association of Australia (MFAA) found the mortgage broker market share increased to 71.8% for the final three months of 2023.
“Australians know their broker is there to help them and the fact that brokers have a legislated duty to put their customers’ best interests first, makes them the clear channel of choice,” added Bailey.
“As bank branch closures continue across the country, brokers provide a vital distribution service.”
The major lenders’ market share continued to grow, reaching 61.7%, attributed to customers upgrading and refinancing their home loans.
AFG Home Loans’ market share for Q3 24 was at 7%, up from 5.3% in the same period last year.
With AFG brokers seeing Investment lodgements grow to 31% from 28% and Upgraders lift by 1% to 39% on Q3 23.
While Refinancers have dipped to 27% from 31% at the same time last year.
“Further reinforcing Australian’s preference for variable rates, Fixed Rate volumes continued the trend of previous recent quarters and are now at an all-time astonishing low of 1.6% as homebuyers wait to see where interest rates head,” said Bailey.
The national average mortgage size is up $5,000 from the previous quarter, with the average loan size smaller in NSW and Western Australia recording the largest increase in average loan size of $10,000.
“Mortgage brokers continue to be the channel that delivers choice and convenience for Australian homebuyers,” added Bailey.
“In a high interest rate environment with cost-of-living pressures impacting us all, having a trusted broker onside to guide homebuyers through their options and help them secure the right finance to suit their individual needs continues to be vital.”
