AFG Hits $100 Billion Milestone
AFG, Australia’s largest mortgage broker, passed a milestone today as its loan book hit the $100 billion mark. AFG may not have the public profile of competitors with a retail presence or an ASX-listing, but its loan book makes it comfortably the largest mortgage broker in Australia – 50% bigger than its nearest rival – and quite possibly the world.
From small beginnings it now forecasts an annual revenue turnover of more than $500m and processes $4.5 billion in loan finance each month. It is responsible for approximately 12% of all new home loans in Australia (Source: ABS and AFG statistics).
The company started out as four Perth friends with a big idea in a rented office in the Perth suburb of Subiaco. It now has offices across the country and a network of 2,100 member brokers who have helped nearly 1 million customers over AFG’s past 20 years in business.
Managing Director and one of the four founding partners Brett McKeon explains the stellar growth AFG has enjoyed: ‘Our mortgage platform business was a first for Australia. That same division is today one arm of a much larger financial services company with a wages bill of $23 million.
‘We have a successful and growing property business with $300 million of projects underway; a growing securitisation arm with over $1 billion in assets that is supported by a treasury department that has issued close to $900 million in Residential Mortgage Backed Securities to global markets over the past 20 months.
‘AFG is also a property development manager and this part of the business is thriving.
‘And in turn we encourage diligent disclosure and compliance by our members which leads to better competition and in turn better outcomes for those everyday Australians looking to secure finance.
Mr McKeon said the success of the business was driven by deliberate strategies to build AFG on sustainable market leading principles, to recruit and retain the best people in the industry and to reinvest in cutting-edge technology systems.
‘AFG actively advocates on behalf of our members to lenders, government and regulators to ensure a level playing field and encourage a competitive lending market.
‘We are one of the fastest-growing providers of holistic financial services and our brokers represent the biggest national distribution network of financial services in the country,’ said Mr McKeon. ‘This milestone is a real achievement for AFG, our members and our staff.’