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The major aggregator’s brokers have finished 2023 on a strong note with over $83 billion residential mortgages lodged over the calendar year.
The latest AFG Index released by aggregator Australian Finance Group (AFG) has revealed that AFG brokers wrote $83.4 billion in residential mortgages over the calendar year 2023.
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The aggregator’s brokers finished the year with over $21 billion in lodgements over the final three months of 2023.
AFG chief executive David Bailey commented on the results: “After a challenging year with rapidly increasing interest rates and cost-of-living pressures weighing on Australians, the mortgage broking channel has once again proven vital to help drive competition and guide consumers with their choice of finance options.
“The latest results show lodgement activity was up 5.27 per cent on the same period last year, with the Northern Territory (up 12.49 per cent), Queensland (up 12.13 per cent), South Australia (up 8.81 per cent), and Western Australia (up 7.74 per cent) leading the way.
“Activity was slower in the country’s two largest states, New South Wales being up 2.51 per cent and Victoria up 2.89 per cent on the same period at the close of 2022.”
Additionally, the average loan size lodged by brokers was revealed to be the second highest on record for the aggregator, closing out with an average loan size of $623,975, just shy of the record $624,077 in the second quarter of 2022.
“Average loan sizes have increased across the country, with a national average increase of just under $19,000 or 3.14 per cent, likely reflecting the competitive conditions prevalent in the housing market at present,” Mr Bailey added.
The index further revealed a drop in the number of customers choosing fixed-rate products, falling from 4.8 per cent to 2.3 per cent for the December quarter, while standard variable rate products rose to 86.1 per cent from 81.2 per cent.
“After a sustained period of cheap fixed rates this is the lowest percentage ever recorded within the AFG Index,” Mr Bailey said.
“With borrowers’ expectations building that the next interest rate movement may be down, it’s clear the short-term romance with fixed rates is well and truly over.”
Meanwhile, customers choosing basic variable rates dropped to 11.3 per cent from 13.1 per cent in the December quarter, while intro rates fell to 0.2 per cent from 0.8 per cent in the same period.
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