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Borrower demand has reached record highs, with new figures from AFG showing that consumers are relying heavily on brokers to navigate the booming market.
The October Mortgage Index from AFG shows that more than $4 billion worth of home loans were processed through the aggregator – its biggest month ever, according to AFG.
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The figure is more than $430 million higher than the month before, up 12 per cent, and 30 per cent higher than October last year.
General manager of sales and operations Mark Hewitt said that as the housing market heats up, consumers are turning to brokers.
“Low rates and intense competition amongst lenders are making the home loan market not only more attractive, but also more complex,” he said.
“Consumers are increasingly turning to brokers to help locate the overall package best suited to them.”
South Australia’s figures were 19 per cent higher than the month before and Victoria’s were up 18.8 per cent.
Queensland and NSW occupied the middle ground with increases of 11.8 per cent and 10.9 per cent respectively, while Western Australia’s volumes were up only five per cent in September.
According to AFG, the figures from WA came off a high base, and the relatively large number of first home buyers in the state was another reason why uplift was less dramatic than elsewhere.
AFG also noted that demand for fixed home loans held steady, accounting for 27.7 per cent of all home loans processed.
However, recent reports suggest that demand may be picking up in this space.
