Australian Finance Group Ltd (ASX:AFG) has reported a record-breaking first quarter for FY26, with mortgage lodgement volumes reaching $30.6 billion, a 10.5% increase on the previous quarter and a 26.5% jump compared to the same period last year. The number of lodgements also hit a new high at 43,799, up 7.3% quarter-on-quarter and 17.7% year-on-year.
AFG CEO David Bailey stated: “The first quarter of FY26 demonstrated strong market activity, highlighted by an increasing presence of investors and a continued rise in average loan sizes.”
“Refinance activity has eased, now at just 17% of all lodgements. This marks a notable decline from 26% a year ago, as the wave of refinancing driven by fixed rate expiries and rate competition has moderated,” he said.
Investor participation has rebounded strongly, now accounting for 36% of all new loans. “This is up 4 percentage points year-on-year, reflecting renewed confidence and appetite for property investment.”
Upgraders are holding steady at 42% of all lodgements. This is a 3% increase from the same period last year, indicating ongoing movement within the owner-occupier market.
“First home buyer activity remains stable at 11%, consistent with the same quarter last year but slightly lower than the previous quarter. Affordability pressures and competition from investors may be influencing this segment,” he said.
State-by-State Highlights:
NSW led the nation with $9.97 billion in lodgements, up 12.2% quarter on quarter (QoQ), and 26.9% year on year (YoY) with an average mortgage size of $791,562.
VIC posted $8.94 billion in volume (+9.9% QoQ, +27.8% YoY), with average mortgage size up 7.1% year-on-year.
QLD reached $5.64 billion in volume (+7.2% QoQ, +19.9% YoY), with average mortgage size up 7.9% year-on-year.
WA saw a 33.5% year-on-year surge in volume to $4.02 billion, with average mortgage size up 11.7%.
SA and NT both posted double-digit quarterly and annual growth in volume.
“The major lenders have consolidated their position this quarter, with their share of new lodgements remaining stable at 59%,” said Mr Bailey. “This is an increase from 55.9% in the same quarter last year, reflecting a shift in borrower preference back towards the majors, while non-majors have seen a corresponding decrease in market share.”
AFG Home Loans achieved a 6.25% market share of all AFG broker lodgements in Q1. Of this, AFG Securities represented 71%, marking the highest proportion in ten years and a significant increase from 61% in the previous quarter. This underscores strong momentum entering FY26, particularly given the higher overall dollar value of total AFG lodgements.
The average national loan size continued its upward trajectory, rising to $698,438, reflecting ongoing property price growth and borrower demand.
