Days from submission to approval creeping higher
Australian Finance Group (AFG) has announced the highest third-quarter lodgement volumes on record, a feat which the leading aggregator attributed to “the growing preference among Australians for mortgage brokers”.
Despite being a traditionally quiet quarter for the sector, AFG recorded $24 billion in mortgage volume during its third-quarter reporting period, marking an 18.5% year-on-year increase and a 10.2% increase on the previous third-quarter record in 2022.
“Australian mortgage brokers are the channel of choice for home finance, with now more than three quarters of all borrowers choosing brokers to help them navigate a continually complex lending market,” said AFG’s chief executive officer David Bailey (pictured).
Western Australia had a particularly strong showing in AFG’s third quarter, with activity up 31.5% year on year. New South Wales rose by nearly 20% and even the challenging Victorian market lifted more than 12%.
Bailey highlighted that refinancings dropped to a record low of 20%. “Upgraders were more active, lifting to 42%, the highest level since the final quarter of 2022 and first-home buyers ticked up slightly to 12%.”
Investors retained 33% of the national market, while the average loan size remained relatively flat.
Turnaround times, however, were also on the up in the third quarter. The average number of days from submission of the loan application to formal approval was 15.5 days, up from 14.8 the prior quarter.
Bailey said: “Unsurprisingly for this time of year, lender turnaround times were up in line with seasonally high volumes and likely January leave for lender staff.”
“With all eyes on the global economy, predictions of future interest rate cuts in Australia becoming increasingly likely, and the resilience of housing through cycles, brokers are bracing for a further surge in activity as we head into the final quarter of FY25,” he concluded,” he added.
