Mortgage Index – January 2012

DRAMATIC HOME LOAN GRAB BY NON MAJOR LENDERS: DECEMBER FIGURES

Non major lenders increased their share of the home loan market by almost a quarter in December, according to figures released today by AFG, Australia’s largest mortgage broker. AFG Mortgage Index shows an increase of 23.9% by non major lenders in the month of December, the biggest such increase recorded all year. This took the total non major market share to 24.3%, compared to an average of 19.1% over the previous twelve months.

Borrowers looking to refinance their home loans were responsible for much of the shift, with non majors seeing their share of this sector rising from 21.0% to 28.8% during the month – an increase of 37%. In the past, both the refinancing and investment home loan markets have been tightly held by the majors, with First Home Buyers showing the greatest willingness to try non majors. But the December figures reveal a significant change, with non major market share rising among refinancers to around the same level as First Home Buyers – 28%.

Mark Hewitt, General Manager of Sales and Operations says: ‘We’re always cautious about reading too much into any one month’s set of figures. But there’s no question that the market is becoming increasingly competitive and that non majors did particularly well last month. This trend will help keep rates competitive as we move into 2012. If the expected rate reductions come through over the next quarter, we could see a very different lending environment, supporting the recovery of property markets across Australia.’

AFG Mortgage Index shows the proportion of fixed rate loans rise to 19.2% in December, up from 17.2% the month before, as more borrowers chose to lock in rates. This figures is not far off the high of 20.4% for fixed rate loans recorded in October.

Seasonal trends saw mortgage sales volumes decline month on month by 26% in December, which together with January are quieter months for the industry. But compared to December 2010, sales volumes were up by 5.4% nationally.

Across Australia, NSW’s December sales volume increased on December 2010 by 15.6%, QLD 7.7%, South Australia a very strong 44.8%, with contractions recorded for WA (3.9%) and VIC (8.9%).

Download – January Mortgage Index – National

Broker Technology
Broker Guides

Download your AFG Information Book

Open the book on AFG and find out how we can partner with you to grow your business.

Services We Offer
Featured Post
Featured Calculators
Broker Guides

Customer Experience and Workflow Optimisation

Learn why creating repeatable customer experiences could be your biggest revenue growth opportunity.

The AFG Story

Find out how we’ve been helping Australians find a fairer deal for over 27 years.

How we're helping
Investor
Looking for the right loan?
Choose your loan type and start comparing products from our lender panel, read the latest finance tips and if you’re looking for expert help, we can put you in contact with an AFG Mortgage Broker.

Starting your own mortgage brokerage

Discover everything you need to know in our ebook to take the leap and become a self-employed mortgage broker.