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Australian Finance Group Ltd (AFG) has reported in its latest AFG Index for 2Q25 a significant surge in residential lodgement volume, surpassing $25 billion for the three months ending December 2024.
This performance contributed to a record half-year residential lodgement total of $49.4 billion, highlighting the ongoing growth and productivity of its broker network.
AFG CEO David Bailey said on the results: “AFG brokers have once again demonstrated their position as the preferred choice for Australians seeking competitive home loan rates and expert assistance in navigating the lending market.
“The first half of FY25 saw an 18 per cent increase compared to the same period last year and a 4 per cent increase on the September 2024 quarter.
“A healthy property market, strong employment and migration, and stable interest rates, has created an environment of confidence to borrow. This level of lodgements hasn’t been observed since early 2022.”
The surge in activity has been seen across the country, with the AFG Index showing that both Western Australia and South Australia recorded their largest volume quarters on record.
“Queensland was the only state to show a slight dip in activity, down 1.9 per cent on the prior quarter, but that is still up 21.4 per cent on the same period last year,” Bailey said.
This increased activity has also coincided with the largest average national loan size on record at $674,284, while the loan-to-value ratio remains historically low despite the rising loan sizes.
NSW has once again emerged as the most expensive state for home buyers, with the average mortgage size climbing to $804,629.
Investors have continued their return to the market, with lodgements making up 33 per cent of all flows, marking the highest percentage of investment loans since the second quarter of 2017.
Additionally, the quarter recorded the lowest percentage of refinancing activity since the third quarter of 2022.
“As we head into the second half, record lodgements, strong recruitment and new technology positions AFG as the aggregator of choice to support our brokers,” Bailey said.
“Brokers will continue to be the channel of choice, driving competition and providing a vital service to homebuyers across the country.”
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