(ASX: AFG) Australian Finance Group Ltd has announced today its highest third-quarter lodgement volume results on record. The increased activity underscores the growing preference among Australians for mortgage brokers. As trusted advisers they provide competitive options and a diverse range of choices in securing home finance.
AFG Chief Executive Officer David Bailey said the quarter was a highlight in a traditionally quieter period for the sector. “Australian mortgage brokers are the channel of choice for home finance, with now more than three quarters of all borrowers choosing brokers to help them navigate a continually complex lending market.
“AFG brokers are at the forefront of that activity, lodging more than $24 billion in mortgage volume for Q3 2025,” he said. “This is 18.5% higher than the same period last year and 10.2% up on the previous Q3 record, back in 2022.
Western Australia reported another strong quarter with activity up 31.5% compared to the same period last year and its second largest quarter ever recorded. New South Wales saw a 19.7% increase, Queensland 18.6%, South Australia 18%, and Victoria is rebounding with a 12.4% rise in lodgement volume from the same quarter in 2024.
“Those choosing to refinance dropped to 20%, the lowest level ever recorded,” he said. “Upgraders were more active, lifting to 42%, the highest level since the final quarter of 2022 and First Home Buyers ticked up slightly to 12%.” Investors were steady at 33% of the market.
The average loan size showed minimal change for the quarter, with a 2.7% decrease in NSW balanced by increases of 1% in Victoria, 3.8% in South Australia, and 2.4% in Queensland. Loan-to-Value Ratios (LVRs) also remained stable throughout the quarter.
“The country’s Big 4 Banks and their associated brands’ market share slipped below 60% once again as all other lenders made up ground to take 40.1% of flows.”
This activity was reflected in AFG Home Loans lodgement volumes, increasing by 5% on Q3 24. “AFG Securities’ lodgements are up 20% on the same period last year and represented 56% of all AFG Home loans lodgements” he said.
Despite many lenders dropping their rates on fixed rate products during the quarter, take up dropped from 4.6% in the prior quarter to 3.3%, as borrowers factor in the likelihood of future rate cuts.
“Unsurprisingly for this time of year, lender turnaround times were up in line with seasonally high volumes and likely January leave for lender staff,” he said. The average number of days from submission of the loan application to formal approval was 15.5 days, up from 14.8 the prior quarter.
“With all eyes on the global economy, predictions of future interest rate cuts in Australia becoming increasingly likely, and the resilience of housing through cycles, brokers are bracing for a further surge in activity as we head into the final quarter of FY25,” he concluded.
