Website Notifications

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

‘Major structural change’ in mortgages: AFG

afg logo  afg logo
James Mitchell 5 minute read

The aggregator’s latest Mortgage Index results show that the market share of Australia’s major banks has hit a post-GFC low.

Released last week, the AFG Mortgage Index found that only 64.4 per cent of broker-originated loans are going to the big four as borrowers continue to explore alternatives outside of the major bank-owned brands.

The aggregator said that the results show that “major structural change” in the Australian lending landscape is continuing.

“The results paint a very different picture from this time last year,” AFG CEO David Bailey said. “Regulator-led tightening of investor lending has led to a further drop in investor volume, and they are now sitting at an all-time low of 29 per cent of the market.”


The shift in lender appetite from investors to upgraders is also evident in average loan size. Mr Bailey noted that the national average home loan is now sitting at an all-time high of $491,000.

“This increase can be explained by the fact that people generally spend more for their primary place of residence than they do for an investment property.”

AFG found that the number of people looking to refinance has dropped to 25 per cent, while those keen to upgrade their living situation is increasing, with upgraders now representing 41 per cent of the market.

“This is also likely to be a reflection of the lack of lending options on the table for investors wanting to refinance, as lenders pull back from the investor market to meet regulator demands,” the CEO said.

First home buyers are enjoying their third consecutive quarter in double digits since the beginning of 2014.


National market share for first home buyers has lifted to 13 per cent across the last quarter, helped in part by new stamp duty concessions kicking in on 1 July for this segment of the market in Victoria and New South Wales.

Victoria continues to set the pace, with lodgement volumes in that state up by 27 per cent on the first quarter of last year, while every other state has lost momentum to varying degrees. The strength of the Victorian home market is also evidenced in the average loan size for that state, which is 5 per cent higher than it was at the same time last year.

“Overall, volumes are up on the previous two quarters; however, compared to the same time last year, they are flat.

This translates into the view that regulator-led changes are being felt everywhere except Victoria,” Mr Bailey concluded.

[Related: Aggregator launches insurance business]

‘Major structural change’ in mortgages: AFG
afg logo
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Work smarter, not harder, in 2022 and beyond, visit the website here to secure your ticket.

afg logo
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
Beau Bertoli Greg Moshal 863x385jpg

Breaking News

Prospa squares up against banks, expands SME loan

The ASX-listed lender has flagged a new “all-in-one” business...

small business owner ta

Breaking News

Business credit demand bounces back in NSW

Data from the initial days of NSW reopening after lockdown has sh...


Breaking News

Hot Property: The biggest property headlines from the week 18-22 October

The weekly round-up of the biggest news stories from across Momen...