Mortgage Index – November 2013

$4 BILLION RECORD-BREAKER FOR OCTOBER – AFG’S BIGGEST MONTH EVER

AFG, Australia’s largest mortgage broker, processed over $4 billion in home loans last month – its biggest month ever, and the first time the company’s national 1,900 brokers have collectively broken through the $4 billion mark.

The $4,057 million figure is 12% higher than the $3,624 million processed the month before, which was itself a record. The October 2013 figure is also 30% higher than that recorded by the company for October 2012, and 61% higher than for October 2011, showing how far the mortgage market, and broader economy, has recovered over the past two years.

Across the nation there were significant variations in different markets. South Australia’s figures were 19% higher than the month before and Victoria’s 18.8%. Queensland and NSW occupied the middle ground with increases of 11.8% and 10.9% respectively, while WA’s volumes were up only 5% on September. The WA figure did come off a high base, and the relatively large number of first home buyers in the state was another reason why uplift was less dramatic than elsewhere.

Mark Hewitt, General Manager of Sales and Operations says: ‘Low rates and intense competition amongst lenders are making the home loan market not only more attractive, but also more complex. Consumers are increasingly turning to brokers to help locate the overall package best suited to them.’

Fixed home loans held steady, accounting for 27.7% of all home loans processed.

AFG’s Mortgage Index again records huge disparities in the proportion of first home buyers across the different states: WA – 23%, SA – 16%, VIC – 11%, QLD – 6%, NSW 4%, in particular reflecting the withdrawal of first home grants in QLD and NSW.

AFG appoints Cameron Smith to lead AFG Home Loans Division

AFG, Australia’s largest mortgage aggregator, has appointed Cameron Smith, former Head of Risk in Wholesale Banking at National Australia Bank to the role of General Manager AFG Home Loans.

Cameron has been in the banking and finance industry for close to 20 years. His experience in securitisation, portfolio management and risk strategy planning complements the goals ahead for AFG Home Loans in further expanding and developing its core product line.

Heading up a national sales team, the focus of Cameron’s role at AFG will be the strategic development, sales and general management of this growing division within the company.

AFG Managing Director Brett McKeon welcomes Cameron to the management team and said he and the Board were looking forward to the new strategic direction the appointment will bring.

“AFG is thrilled to have attracted someone of Cameron’s calibre at such a pivotal time for the company,” he said.

“Cameron’s experience within the mortgage market and his significant exposure to warehouse funding presented us with the perfect match in terms of who we were looking for,” he added.

The appointment comes as AFG ramps up its activity in the securitisation market. AFG recently successfully priced a $300 million Residential Mortgage Backed Securities (RMBS) transaction, the second RMBS transaction for AFG this year. The $300 million pool of home loans were originated through the AFG network and are managed by the AFG Home Loans and Securities teams.

“AFG itself has experienced such tremendous growth in the past few years. To be able to help drive the company’s internal home loans division to achieve the same levels of success is something I’m very much looking forward to,” said Cameron.
Cameron holds a Bachelor Degree in Commerce & Arts with honours in Economics and Finance from the University of Melbourne, a Graduate Diploma of Applied Finance and is a Chartered Financial Analyst.

Cameron is relocating from Melbourne to be based in AFG’s Perth head-office this week.