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AFG brokers have written 2,000 more loans this year than at the same time last year, signalling a significant lift in the property market and consumer sentiment.
According to AFG’s latest Mortgage Index, 8,660 loans were written this month, compared to just 6,882 loans this time last year.
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The average mortgage size has also jumped from $393,000 to $418,000; however, the average loan to value ratio has remained consistently at around 68 per cent since the start of the year.
According to Mark Hewitt, general manager of sales and operations at AFG, the figures show borrowers are active but cautious.
“Whilst borrowers are becoming more confident, they haven’t forgotten the lessons of over-gearing learned during the GFC,” he said.
“With the election now behind us and a sense of greater policy certainty, borrowers are responding to the combination of historically low rates, good affordability and rising property values with a strong, but sustainable momentum.
“Talk of property bubbles, including those driven by SMSFs, is overstated at this point.”
AFG also recorded another record-breaking month in September for mortgage volume, processing $3,624 million in home loans.
