Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Eastern states drive mortgage growth for major aggregator

James Mitchell 7 minute read

One of Australia’s largest mortgage groups has seen a significant increase in lodgements from Victoria, Queensland and NSW over the final quarter of 2016.

AFG this week released the AFG Mortgage Index, which shows year-on-year growth in lodgement volume for the company of 9.9 per cent.

AFG chief operating officer David Bailey said 2016 saw the eastern seaboard lead the way with Victoria recording an increase of 23 per cent for the year.

“After a number of years of lacklustre activity, it has been encouraging to see Queensland record 18 per cent growth across the 12 months. Continued growth was also evident in NSW with a 10 per cent increase in lodgements for the year,” Mr Bailey said.

However, he noted that the remainder of the country tells a very different story.

Advertisement
Advertisement

The Index shows that South Australia remained flat across 2016 while Western Australia lodgements fell 16 per cent for the year. The Northern Territory also showed a drop of 18 per cent across the year.

“A recent increase to the First Home Owners Grant and a relaxation in eligibility requirements for Keystart lending is clearly an attempt by the Western Australia state government to help lift the housing market and stimulate the construction sector in that state,” Mr Bailey said.

“Loan-to-value ratio (LVR) remained relatively consistent across the 12-month period at 69 per cent,” he said.

“The national LVR for the final quarter of 2016 was 0.7 per cent lower than the same period in 2015, which is good news as this means owner equity has improved.

Historically, the national LVR has been sitting within the 69 per cent range across 2015 and 2016.

“As highlighted in the most recent AFG Competition Index, non-major lenders have been taking market share from the majors. “The major banks dropped market share across all sectors of the market in the final quarter of 2016,” said Mr Bailey.

With many lenders increasing fixed and variable interest rates and tightening lending to investors, Mr Bailey says consumers have been encouraged to examine their own situation.

“We are seeing many pick up the phone to their mortgage broker to determine if their loan is still the most appropriate for their circumstances,” he said.

“We expect this trend to continue into the new calendar year as an increasing number of consumers recognise that a mortgage broker is in the unique position of being able to provide a comprehensive view of the alternatives available across lenders and products.”

[Related: White-label mortgages dominating the market]

Eastern states drive mortgage growth for major aggregator
default
TheAdviser logo
default

TODAY'S POLL

View results >

Who do you aggregate through?

Thank you for your vote, you can see the results here.

James Mitchell

James Mitchell

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.

He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.

James holds a BA (Hons) in English Literature and an MA in Journalism.

 

more from the adviser
asic ta 2 ASIC issues post-mortgage deferral guidance

The corporate regulator has outlined its expectations of lenders ...

calculator document2 ta Bank lowers DTI cap for FHLDS loans

A non-major bank has announced that it will reduce the maximum de...

Dino Pacella ta Simplicity Loans & Advisory adds national manager

The brokerage has grown its team by appointing a national manager...

FROM THE WEB