Surge in broker activity drives $49.4 billion in half-year residential lodgements
The Australian Finance Group (AFG) has announced a record-breaking performance for the three months ending December 2024, with residential lodgement volumes surpassing $25 billion.
The figures contributed to a half-year total of $49.4 billion, marking a significant period of growth for the aggregator’s broker network.
“AFG brokers have once again demonstrated their position as the preferred choice for Australians seeking competitive home loan rates and expert assistance in navigating the lending market,” said David Bailey (pictured above), AFG chief executive.
Bailey noted an 18% year-on-year increase in the first half of financial year 2025, with lodgement volumes rising 4% compared to the September quarter.
“A healthy property market, strong employment and migration, and stable interest rates, has created an environment of confidence to borrow,” he said. “This level of lodgements hasn’t been observed since early 2022.”
The AFG Index revealed increased activity across most regions, with Western Australia and South Australia achieving record-breaking quarterly volumes. Queensland experienced a slight dip of 1.9% compared to the prior quarter, but activity was still up 21.4% year-on-year.
The surge also led to the highest recorded national average loan size at $674,284. New South Wales remains the most expensive state for borrowers, with the average loan size reaching $804,629. Loan-to-value ratios, however, remain historically low despite increasing loan amounts.
Investor participation hit 33% of total flows, the highest proportion since the second quarter of 2017. Meanwhile, refinancing activity dropped to its lowest share since Q3 2022.
Major lenders increased their market share by 5.1% during the quarter, now holding 61% of the market. Bailey attributed this growth partly to the inclusion of Suncorp data in the major lenders category following its acquisition by ANZ.
“Suncorp’s data accounts for just over half of the lift in market share for the country’s Big 4 lenders and their associated brands,” Bailey said.
AFG Home Loans’ market share declined slightly to 6.6%, a result of heightened competition. Despite this, Bailey expressed optimism about the company’s positioning.
“As we head into the new year, AFG Home Loans is well positioned to once again be at the forefront as a compelling alternative to the major banks,” he said. “AFG’s own funded products through AFG Securities accounted for 56% of its home loans market share, while the performance of white-label products remains a challenge.”
AFG also reported improved lender turnaround times, with the average time from loan submission to formal approval now at 14.8 days — the fastest recorded since the company began tracking this metric.
Bailey emphasised the company’s preparedness for the second half of FY25, pointing to record lodgements, strong recruitment, and advancements in technology as key drivers.
“Brokers will continue to be the channel of choice, driving competition and providing a vital service to homebuyers across the country,” he said.
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