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AFG brokers lodged a record $27 billion in home loans in the June quarter, a new quarterly record for the group.
ASX-listed aggregator Australian Finance Group (AFG) has revealed that its brokers closed the financial year ending June 2025 (FY25) with a bang, lodging record volumes over the three-month period.
The group’s latest Mortgage Index, which covers AFG broker activity for 4Q25 (ending 30 June), has revealed that the aggregator’s brokers lodged more than $27 billion in home loans for the quarter, up 19 per cent year on year.
This marked the highest quarterly volume in the company’s history.
It takes the total lodgements for FY25 to $101 billion, building on the trend seen in the previous financial year, where total lodgements also surpassed $100 billion.
The new volume record was set as brokers wrote a record-high number of lodgements in 4Q25. AFG brokers lodged a record 40,810 mortgages over the three-month period, up 12 per cent year on year, surpassing the previous record set in the September quarter of 2022.
The volume growth comes as the average mortgage size climbed 6 per cent year on year to $678,333, which AFG said reflected “sustained strength in property prices”.
AFG CEO David Bailey said the results reflected strength in the broker channel and consumer confidence in the choice brokers provide.
“Nationally, AFG brokers lodged 40,810 loans, the highest number we’ve ever recorded and only the second time we’ve surpassed the 40,000 mark,” Bailey said.
“The last time we saw this level of activity was Q1 of 2022.
“These results reinforce the critical role brokers continue to play in helping borrowers, providing them with lending solutions as they navigate a complex lending environment.”
Refinance activity slumps as borrowers wait for rate cuts
Investor loans made up more than a third of all lodgements in the final quarter of the financial year, rising to 34 per cent (just over 13,800 loans), the highest proportion seen in more than eight years.
However, unlike in 2017 (when investor lending and interest-only speed limits were in place following concerns surrounding investor lending demand), the proportion of interest-only loans is much smaller. Just over a fifth (21 per cent) of AFG loans were for interest-only repayments in the June quarter, compared to more than 50 per cent in the peak of the investor lending boom of 2016–17.
Fixed rate products also saw minimal uptake in the quarter, with just 2.3 per cent of customers choosing to lock in rates compared to 3.3 per cent in 3Q25 and 4.6 per cent in 2Q25.
AFG CEO Bailey told The Adviser that interest rate cuts were boosting demand for investment properties.
“Rising rents and lower interest rates make the yield on investment properties more attractive,” he said.
The share of first home buyer loans written by AFG brokers remained relatively flat for the quarter, at 12 per cent of all mortgages lodged.
However, refinancing activity dropped to a record low of 19 per cent, with AFG suggesting that borrowers were likely holding off in anticipation of future rate cuts.
Speaking to The Adviser about low refinancing rates, Bailey said: “There can be less urgency for borrowers to refinance in a falling rate environment, while they assess how things settle and their current lender reacts.
“People also tend to be reluctant to lock in a fixed rate early in the cycle, should rates drop further.”
The national loan-to-value ratio (LVR) fell to a record low of 63.1 per cent, compared to 66.6 per cent a year before.
Bailey commented that this may be because many borrowers are leveraging equity from previous property gains.
[Related: AFG refinancing activity drops to record low]
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