AFG recorded its highest-ever volume of investor home loans in March, driven by strong demand from NSW borrowers.
The latest AFG Mortgage Index shows the aggregator processed $5.2 billion in mortgages last month – the largest volume in any single month for the company in its 21 years in business.
Loans for property investment hit a new record high of 41.7 per cent, driven especially by strong activity in NSW, where investors accounted for 52.9 per cent of all mortgages processed.
This investor loan figure compares with 37.7 per cent in South Australia, 36.7 per cent in Victoria, 33.6 per cent in Western Australia and 33.3 per cent in Queensland.
“What happened in March is really the story of Sydney and Melbourne,” AFG's general manager of sales and operations, Mark Hewitt, said.
“Volumes in other cities were strong but unspectacular.
“The combination of rate expectations, with a traditionally buoyant month for property sales, made March a stand-out month," he said
Fixed-rate loans comprised 14.2 per cent of the mortgage mix, with 68.8 per cent of borrowers opting for standard variable loans.
LVRs remained steady at 67 per cent nationally, relatively lower in NSW (64 per cent) than in Victoria and WA (71 per cent in both cases) on account of the typically higher levels of equity provided by investors seeking loans.
[Related: AFG appoints boss for home loans division]
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