AFG has ended the 2021 financial year with record results in Q4, with the broker channel delivering $22.6 billion in home loan lodgements for the aggregator.
That number is 10% up on the Jan-March period and a full 34% up on the equivalent part of 2020.
Every area of the country saw huge growth, with NSW leading the way with almost $8 billion in lodgements. Victoria did $7.5 billion.
It has been nothing but good times of late at AFG: yesterday, it was announced as one of the best banking picks on the ASX, while last month, it made a big, broker-friendly move by bringing Ruan Burger on board to help education and liaison with the channel.
David Bailey, CEO at AFG, said that the grwoth of the broker channel in the mortage space was a key driver of AFG's success.
"The result is a reflection of customers continuing to embrace the broker channel as a means ot securing home finance," he said. "The evidence that we have from our brokers is that they've ever been busier, and that's a good thing for the broker channel."
"It's also a good thing for Australian consumers. The broker channel is all about competition and choice and the AFG results reflect the increasing appetite from customers to seek that competiton and choice."
The major market segment of the results was the upgrader cohort, who have seen equity in their homes grow and decided to act upon in.
"It's not just moving to regional areas, it's also customers who see record low interest rates and decide that there's never been a better time to move to a place which is larger, whether because of a growing family or to be closer to a better school or amenity," said Bailey.
"Also, some of the feedback that we're getting is customers who have done a lockdown, had the kids at home and their partner working from home with them, and decided that they need a bigger house. Simple as that, they need more space, because if there's a prolonged lockdown, everyone working around the dining room table isn't the best outcome for anyone."
"Other agencies have indicated that there is a tree change, where people are moving out to regional areas, but invariably, it's those customers who use this opportunity to make that move now, and that is reflected in broker activity."
Turnaround times are also a huge issue for the broker channel, and Bailey said that he expect that to subside slightly.
"The only reason that is getting better is that clearly, more resources are being put into solving the turnaround issue for the banks. My expectations, from most lenders that we are talking to, is that they're increasing the resourcing within their departments."
"25 days, the average, is not a good outcome and there are a number of lenders that are working inside that number, and I think that as businesses are geting geared up to accomodate volumes that are washing through from the broker channel.
