First home buyer activity is continuing to drive strong mortgage sales for brokers but increasingly tight lending criteria could hit volumes AFG warns.
AFG revealed a record $800 million written in first home buyer business in March with total sales reaching $3.1 billion.
But Mark Hewitt, AFG general manager of sales and operations, said the boom masked growing evidence of credit tightening by the major lenders which could lead to a decline in loans written.
“The truth is that we’re seeing a big reduction in the proportion of loans that are approved and eventually settle.
"Once the boost to the first home buyer grants ends in June, we face the possibility of a bleak mortgage winter.”
Mr Hewitt said the major lenders had benefited from generous government support and should do their part by providing access to credit on reasonable terms.
AMP Bank has recruited from MyState for its new head of intermedi...
North Sydney-based brokerage Shore Financial has officially launc...