Fresh data from AFG has revealed the aggregator lodged a “record” June quarter by value, with lodgements shifting away from the major banks.
Australian Finance Group (AFG), one of the country’s largest broker aggregators, has reported that its network lodged $28.1 billion in home loans in 4Q26, with the majors losing share to non‑major banks.
Across the three months to 30 June, AFG brokers lodged just under 39,000 mortgages (38,583), down from 40,810 lodgements in 4Q25 and 40,784 in 3Q26.
Despite the softer volume, the total value of lodgements climbed to a new June‑quarter high as the average loan size rose to $727,345, up from $678,333 a year earlier.
AFG described the quarter as a milestone, both in terms of volume and momentum heading into the new financial year.
The group said the performance “represents AFG’s strongest June quarter on record and a 1.4 per cent increase on the prior year. The business enters FY27 in good shape, carrying genuine momentum”.
CEO David Bailey linked that outcome to the resilience of the broker channel in a difficult macro setting of higher interest rates and shifting sentiment.
“Following the strongest March quarter on record, some easing in June was expected, especially after the federal budget announcements on 12 May and during a tightening rate cycle,” he said.
“Despite divergence across states and shifting borrower sentiment mid-quarter, we delivered positive year-on-year growth and a record-high average loan size.”
Westpac leads as majors cede ground
The index revealed that while the majors still attracted the most lodgements, their share slipped at the margin as borrowers spread activity across a wider set of lenders.
In 4Q26, 58 per cent of residential lodgements went to major banks and associated brands, down from 59.7 per cent in the same quarter of FY25, while non‑majors lifted their share from 40.3 per cent to 42 per cent.
Within that total, Bailey said the competitive balance between brands had shifted again, with Westpac‑owned lenders nudging ahead of other groups.
“Westpac brands captured an 18 per cent market share for the quarter, marginally ahead of CBA and ANZ brands at 16 per cent, with Macquarie close behind at 14 per cent. NAB remained flat at 8 per cent, but over-indexed in investor flows at 36 per cent,” he said.
Investor lodgements to majors fell to 54 per cent, down from 57.1 per cent a year earlier, with non‑majors lifting to 46 per cent from 42.9 per cent.
Refinancing to major banks meanwhile dropped to 52 per cent from 55.5 per cent, while refinance activity to non‑majors rose to 48 per cent from 44.5 per cent.
First home buyer flows (FHB), however, moved in the opposite direction.
Lodgements to major banks rose to 72 per cent in the quarter, up from 68.6 per cent in 4Q25, while FHB lodgements to non‑majors fell to 28 per cent from 31.4 per cent.
Product mix and funding channels evolve
The index also captured an overwhelming preference for variable‑rate products, despite fixed‑rate options slowly regaining ground.
Standard variable loans accounted for 87.5 per cent of lodgements, up slightly from 87.2 per cent a year earlier, while basic variable products dropped to 7.5 per cent from 9.5 per cent.
Fixed‑rate loans grew to 3.8 per cent of lodgements, compared with 2.3 per cent in 4Q25.
Interest‑only lodgements to majors declined to 55 per cent from 56.9 per cent and rose to 45 per cent for non‑majors from 43.1 per cent.
Principal‑and‑interest lodgements to majors dropped to 59 per cent from 60.5 per cent, while non‑majors increased to 41 per cent from 39.5 per cent.
AFG’s own-funded products also recorded growth, underscoring the rising role of non‑bank alternatives within its network.
AFG Securities closed FY26 with a $7.1 billion loan book, a 30 per cent increase over 12 months, which the aggregator said was achieved while maintaining “disciplined credit standards and good arrears performance”.
It said that home loans under its own brand delivered a “standout quarter”, with $2.28 billion in lodgements, up 28 per cent on the prior year, and market share of total AFG lodgements reaching 7.9 per cent.
[Related: Major banks: Reinforcing the 4 pillars]
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