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The big four banks have seen their share of lodgements from AFG brokers dip during the third quarter of FY25.
Australia’s big four banks have seen their share of lodgements from Australian Finance Group (AFG) brokers once again dip below 60 per cent, falling to 59.9 per cent during the third quarter of the financial year ending 30 June 2025 (FY25).
According to the most recent data of AFG Index from the ASX-listed aggregation group, published 16 April 2025, the aggregator’s brokers lodged record third-quarter volumes ($24.1 billion) in the three months to 31 March 2025.
But the data also showed the share of lodgement volumes from the majors and their subsidiary brands (Bankwest at CBA; St.George, BankSA, & Bank of Melbourne at Westpac; UBank at NAB; and Suncorp at ANZ) was the lowest recorded by AFG brokers for a Q3 in three years.
David Bailey, AFG CEO, said: “The country’s big four banks and their associated brands’ market share slipped below 60 per cent once again as all other lenders made up ground to take 40.1 per cent of flows.”
Instead, AFG brokers were sending more volumes to non-major banks and non-banks, including AFG’s own loan manufacturing line.
Indeed, Bailey revealed that AFG Securities’ lodgements were up 20 per cent on 3Q24 and represented more than half (56 per cent) of flows going to its lending arm AFG Home Loans (which also includes a suite of white label loans and which were also up 5 per cent on 3Q24).
The aggregator’s securitised lending arm has grown rapidly in recent years, with the AFG Securities loan book having grown 23 per cent in the first half of the financial year (1H25), to a record $5.1 billion, while gross profit was up $1 million.
Over the six months to December, AFG Securities settled $1.44 million in loans, up 147 per cent on 1H24.
In fact, delivering higher margins through its distribution network – including by increasing its proprietary loan book – has been a key “strategic pillar” for the aggregation group in recent months.
What is going where?
In terms of lender segments, the AFG data showed that non-majors saw their share of the first home buyer market grow in 3Q25 to 31.7 per cent, a 7.8 per cent increase from the same period in FY24 (29.4 per cent).
However, the majors held ground when it came to investor volumes, which accounted for 33 per cent of all mortgages lodged by AFG brokers during the quarter, a record figure for this segment.
The major’s share of investment volumes was up 0.4 per cent on the prior quarter to 57.9 per cent. However, this figure also represented a 4.5 per cent drop when compared to the share of investment lodgements in 3Q24 (60.6 per cent).
Non-major banks also saw their share of refinancing volumes increase in a quarter where activity in this segment dropped to a record low.
According to AFG Index data, the non-major banks’ share of refinancing volumes rose to 43.6 per cent in the quarter, up 5.1 per cent from the same period in the previous financial year (41.5 per cent).
The AFG figures mirror trends from Agile Market Intelligence’s Broker Pulse survey. According to the most recent survey – asking brokers about their lender experiences in the month of March – a growing proportion of brokers is using non-major banks.
The March survey – conducted in early April – revealed that 83 per cent of brokers used a non-major bank in the month of March, while 79 per cent used a major bank.
However, ANZ was the most commonly used lender in the month, with 46 per cent of broker respondents saying they had lodged a loan with the big four bank in March, closely followed by Macquarie Bank.
[Related: AFG brokers lodging record volumes]
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