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Brokers aggregating under AFG have set new quarterly and half-year lodgement records in the first half of the financial year 2025, new data has shown.
The first half of FY25 has been a strong one for brokers aggregating under the Australian Finance Group (AFG), with new quarterly and half-year lodgement records achieved, according to the group.
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The ASX-listed aggregator’s AFG Index for January 2025, released on Tuesday (21 January) has revealed that AFG brokers lodged a record $49.4 billion in residential loans over the six months to December 2024, representing an 18 per cent increase on the same period in FY24 ($42 billion).
This result was buoyed by two record quarters from AFG brokers.
In the three months ending December 2024, for example, AFG broker residential lodgement volumes exceeded $25 billion ($25.2 billion) for the first time ever, a 4 per cent increase on the previous record of $24.1 billion (set in the three months to September 2024).
The new records were achieved as the average national loan size lodged by AFG brokers grew to a new record high, coming in at $674,284 in the December quarter.
However, the number of loans lodged (37,426) was still below the record-breaking volumes achieved in FY22 (40,098).
AFG CEO David Bailey commented on the results, saying these represented the largest level of lodgements recorded by the aggregator for three years.
“AFG brokers have once again demonstrated their position as the preferred choice for Australians seeking competitive home loan rates and expert assistance in navigating the lending market,” Bailey said.
“The first half of FY25 saw an 18 per cent increase compared to the same period last year and a 4 per cent increase on the September 2024 quarter.
“A healthy property market, strong employment and migration, and stable interest rates, has created an environment of confidence to borrow.”
Areas of investment
The surge in lodgement values was reflected across the country, with increased activity in Western Australia and South Australia resulting in the largest-ever quarterly volumes for the two states, at $3.3 billion and $1.6 billion, respectively.
Queensland was the only state that saw a quarterly dip in lodgement values, according to AFG, down 1.9 per cent to $4.6 billion.
However, AFG said this figure was still 21.4 per cent higher than during the same period from FY24 ($3.8 billion).
Meanwhile, NSW once again emerged as the dominant market for AFG brokers, with $8.2 billion of residential loans lodged in the December quarter. NSW remains the most expensive state for home buyers, with average mortgage sizes lodged by AFG brokers climbing to $804,629.
This figure was 19 per cent higher than the national average for the quarter ($674,284), which is the largest national average on record.
Despite these increased loan sizes, AFG said that the quarterly loan-to-value ratio (LVR) was still at historic lows, hovering around 64.7 per cent.
AFG investing in broker businesses
The record lodgement data comes as AFG increases its investment in its broker members.
As reported by The Adviser on Tuesday (21 January), the aggregation group has invested $6 million in minority holdings in Melbourne-headquartered Empower Wealth Group and Western Australian-based brokerage, Lifespan Mortgage Services.
These acquisitions are part of AFG’s new program of direct investments first announced last year, where the aggregator takes a non-controlling equity position in “successful growth-oriented brokerages”.
“As we head into the second half, record lodgements, strong recruitment and new technology positions AFG as the aggregator of choice to support our brokers,” Bailey said.
“Brokers will continue to be the channel of choice, driving competition and providing a vital service to homebuyers across the country.”
[Related: AFG takes minority stakes in 2 brokerages]
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