Australian Finance Group Ltd (ASX:AFG) has closed out the 2025 financial year with a record-breaking quarter, lodging more than $27 billion in home loans, up 19% year-on-year, and marking the highest quarterly volume in the company’s history. This trend continues the performance in financial year 2025 with lodgements surpassing $100 billion.
State-by-state figures highlight strong performance across the country. When compared to the same period last year:
- New South Wales led the charge with $8.88 billion in lodgements, a 16% increase,
- Victoria was up 17% at $8.14 billion,
- Queensland was 21% higher at $5.26 billion,
- Western Australia increased by 25% to $3.67 billion, and
- South Australian brokers lodged $1.71 billion, 18% more than Q4 2024.
AFG CEO David Bailey said the results reflect continued strength in the broker channel and consumer confidence in the choice brokers provide. “Nationally, AFG brokers lodged 40,810 loans, the highest number we’ve ever recorded and only the second time we’ve surpassed the 40,000 mark,” Mr Bailey said. “The last time we saw this level of activity was Q1 of 2022.”
Despite the surge in lodgements, refinancing activity has dropped to an all-time low of 19%, with borrowers likely holding off in anticipation of future rate cuts. Fixed rate products also saw minimal uptake, with just 2.3% of customers choosing to lock in rates.
Non-major lenders continued to gain ground, lifting their collective share to 40.3%. “AFG Home Loans also recorded solid growth, climbing to 6.55%, a clear signal of increasing consumer appetite for competitive alternatives to the major banks,” he said. “AFG Securities contributed 61% of the AFG Home Loans volume, positioning the business with a robust pipeline and strong momentum as we head into the new financial year.”
“Investor activity is also on the rise, reaching 34% – a level not seen since financial year 2017,” said Mr Bailey. “At the same time, the national Loan to Value Ratio (LVR) dropped to a record low of 63.1%, suggesting that many borrowers are leveraging equity from previous property gains.”
The average mortgage size climbed to $678,333, reflecting sustained strength in property prices. Lender turnaround times edged up slightly to 15.6 days but remained resilient under record volumes.
“These results reinforce the critical role brokers continue to play in helping borrowers, providing them with lending solutions as they navigate a complex lending environment,” Mr Bailey concluded.
