Australian Finance Group has seen a record-breaking month of loan processing off the back of surging refinancing demand, according to its monthly index.
The aggregator announced yesterday that it processed a total of $5.02 billion in May, indicating 18.9 per cent annual growth on May 2014 – the second time this year AFG has passed the $5 billion threshold.
“A surge in the number of borrowers looking to refinance their mortgages saw the total home loans processed last month by AFG rise to a record-breaking May,” said a statement from AFG.
The index found that the proportion of loans processed for investors softened, while refinancer loans increased, reflecting “shifts in the mortgage market”.
Commenting on the findings, AFG managing director Brett McKeon said the aggregator is benefiting from the current interest rate environment.
“Interest-rate cuts, like the one we had in April, not only encourage new borrowers – but also prompt existing borrowers to review their arrangements,” Mr McKeon said.
“After the April rate cut, it appears many borrowers came to the view that we are at, or very close to, the bottom of the interest rate cycle.
“The attractive owner-occupier offers available from lenders, along with the changes that are occurring in the investment market, make it a very busy time for brokers.”
[Related: Investors drive record result for AFG]