NATIONAL

DRAMATIC HOME LOAN GRAB BY NON MAJOR LENDERS:

DECEMBER FIGURES
9 January 2012
Non major lenders increased their share of the home loan market by almost a quarter in December,
according to figures released today by AFG, Australias largest mortgage broker. AFG Mortgage Index
shows an increase of 23.9% by non major lenders in the month of December, the biggest such
increase recorded all year. This took the total non major market share to 24.3%, compared to an
average of 19.1% over the previous twelve months.
Borrowers looking to refinance their home loans were responsible for much of the shift, with non
majors seeing their share of this sector rising from 21.0% to 28.8% during the month an increase of
37%. In the past, both the refinancing and investment home loan markets have been tightly held by
the majors, with First Home Buyers showing the greatest willingness to try non majors. But the
December figures reveal a significant change, with non major market share rising among refinancers
to around the same level as First Home Buyers - 28%.
Mark Hewitt, General Manager of Sales and Operations says: Were always cautious about reading
too much into any one months set of figures. But theres no question that the market is becoming
increasingly competitive and that non majors did particularly well last month. This trend will help
keep rates competitive as we move into 2012. If the expected rate reductions come through over the
next quarter, we could see a very different lending environment, supporting the recovery of property
markets across Australia.
AFG Mortgage Index shows the proportion of fixed rate loans rise to 19.2% in December, up from
17.2% the month before, as more borrowers chose to lock in rates. This figures is not far off the high
of 20.4% for fixed rate loans recorded in October.
Seasonal trends saw mortgage sales volumes decline month on month by 26% in December, which
together with January are quieter months for the industry. But compared to December 2010, sales
volumes were up by 5.4% nationally.
Across Australia, NSWs December sales volume increased on December 2010 by 15.6%, QLD 7.7%,
South Australia a very strong 44.8%, with contractions recorded for WA (3.9%) and VIC (8.9%).
Figures for each state are available at: www.afgonline.com.au: Corporate - News.

ENDS
CONTACT DETAILS
Mark Hewitt, AFG General Manager Sales & Operations

Mob 0414 801 251 | Tel (08) 9420 7888

David Michie, Mosaic Reputation Management

Tel

(08) 9381 4494 | Mob 0411 453 404

www.afgonline.com.au

AFG MORTGAGES SOLD

TABLE 1: ALL AUSTRALIA
MONTH

TOTAL
NUMBER

TOTAL
AMOUNT

AVERAGE SIZE

PROPERTY
INVESTORS

FIRST TIME
BUYERS

%
REFINANCE

Oct 10
Nov 10
Dec 10
Jan 11
Feb 11
Mar 11
Apr 11
May 11
June 11
July 11
Aug 11
Sep 11
Oct 11
Nov 11
Dec 11

5,891
6,619
5,472
3,583
5,365
6,436
5,489
6,483
6,205
5,937
7,198
6,687
6,349
7,492
5,576

$2,234 m
$2,511 m
$2,076 m
$1,310 m
$2,053 m
$2,513 m
$2,119 m
$2,517 m
$2,382 m
$2,293 m
$2,764 m
$2,633 m
$2,509 m
$2,970 m
$2,188 m

$380k
$379k
$379k
$365k
$382k
$390k
$386k
$388k
$384k
$386k
$384k
$393k
$395k
$396k
$392k

35.4%
35.1%
35.5%
34.7%
33.9%
34.7%
34.9%
36.5%
36.2%
35.6%
36.5%
37.7%
35.6%
38.4%
37.8%

11.8%
12.2%
11.4%
14.1%
14.6%
13.9%
13.9%
13.2%
12.9%
13.6%
13.8%
15.7%
16.4%
15.8%
15.7%

37.8%
38.5%
41.5%
36.1%
37.0%
36.9%
36.7%
36.8%
39.2%
39.1%
38.2%
37.9%
37.9%
37.8%
36.2%

www.afgonline.com.au

MAJOR VS NON MAJOR LENDER MARKET SHARE

TABLE 2: BY BUYER TYPE
TOTAL MORTGAGES

REFINANCE

FIRST HOME BUYERS

INVESTORS

MONTH

MAJOR

NONMAJOR

MAJOR

NONMAJOR

MAJOR

NONMAJOR

MAJOR

NONMAJOR

2010 12
2011 01
2011 02
2011 03
2011 04
2011 05
2011 06
2011 07
2011 08
2011 09
2011 10
2011 11
2011 12

81.1%
80.7%
79.4%
81.7%
82.4%
80.4%
82.1%
81.7%
82.0%
80.1%
78.9%
80.4%
75.7%

18.9%
19.3%
20.6%
18.3%
17.6%
19.6%
17.9%
18.3%
18.0%
19.9%
21.1%
19.6%
24.3%

78.7%
77.5%
74.5%
79.0%
80.5%
78.7%
78.7%
79.8%
80.3%
78.6%
78.8%
78.9%
71.2%

21.3%
22.5%
25.6%
20.9%
19.5%
21.3%
21.3%
20.2%
19.7%
21.4%
21.2%
21.0%
28.8%

79.0%
77.1%
75.0%
79.7%
77.3%
77.1%
76.2%
77.6%
77.8%
70.7%
70.8%
71.3%
71.7%

20.9%
22.9%
24.9%
20.3%
22.8%
22.9%
23.8%
22.5%
22.2%
29.3%
29.2%
28.7%
28.3%

82.4%
82.2%
81.6%
82.2%
83.3%
83.0%
82.9%
83.0%
83.4%
82.8%
82.7%
82.6%
78.0%

17.6%
17.8%
18.4%
17.8%
16.7%
17.0%
17.0%
17.0%
16.6%
17.2%
17.3%
17.4%
21.9%

Majors
= Four major banks including the brands they own
Non-Majors = All other lenders

AVERAGE MORTGAGE SIZE IN DOLL ARS

TABLE 3: STATE BY STATE
MONTH
2010 09
2010 10
2010 11
2010 12
2011 01
2011 02
2011 03
2011 04
2011 05
2011 06
2011 07
2011 08
2011 09
2011 10
2011 11
2011 12

AUSTRALIA
379,374
380,027
379,385
379,444
365,799
382,725
390,479
386,218
388,384
384,042
386,382
384,124
393,822
395,226
396,520
392,559

NSW
454,325
442,743
434,898
432,540
416,527
451,630
467,034
453,492
453,286
455,559
456,388
452,230
461,132
447,144
449,942
450,620

QLD
318,556
354,651
354,220
344,485
319,554
354,012
357,177
357,453
354,886
347,506
360,034
348,880
358,846
358,142
352,252
361,439

SA
300,754
315,306
305,978
324,070
301,933
321,672
309,931
315,692
302,057
294,092
318,695
323,487
325,771
329,566
318,437
325,937

www.afgonline.com.au

VIC
354,673
359,271
359,343
370,978
349,155
346,465
360,051
363,724
379,993
362,063
388,360
382,884
383,114
396,238
400,929
376,570

WA
398,064
393,479
395,325
396,047
397,102
394,922
396,572
404,714
399,372
412,557
371,500
382,598
397,917
406,019
418,360
409,917

NT
318,556
307,661
338,145
339,641
329,902
360,971
376,348
326,205
383,786
347,725
355,855
321,164
338,159
369,765
376,376
395,489

LOAN VALUE RATIOS (loan stated as % of property value)

TABLE 4: STATE BY STATE
AUSTRALIA
64.5%
64.2%
65.9%
65.4%
68.8%
65.8%
63.9%
65.5%
64.2%
66.3%
67.7%
66.0%
66.7%
66.5%
67.5%

2010 10
2010 11
2010 12
2011 01
2011 02
2011 03
2011 04
2011 05
2011 06
2011 07
2011 08
2011 09
2011 10
2011 11
2011 12

NSW
67.5%
65.1%
66.2%
66.5%
69.2%
66.8%
65.4%
66.2%
64.4%
68.7%
70.1%
69.0%
70.0%
69.7%
69.6%

QLD
65.5%
64.2%
65.1%
62.8%
66.5%
65.2%
65.4%
66.0%
66.0%
66.3%
67.1%
68.9%
67.9%
66.9%
68.4%

SA
64.9%
62.1%
65.5%
62.2%
66.5%
67.2%
64.9%
64.8%
63.4%
65.0%
67.8%
64.1%
67.8%
64.5%
67.7%

VIC
66.3%
65.5%
66.1%
67.7%
66.5%
67.5%
65.8%
66.0%
65.3%
65.5%
69.9%
65.2%
65.9%
66.6%
64.7%

WA
63.7%
64.1%
63.6%
66.8%
65.9%
65.0%
65.1%
63.8%
65.2%
66.5%
65.0%
66.4%
67.8%
67.1%
68.7%

NT
59.0%
64.2%
68.7%
66.2%
78.2%
63.1%
56.8%
66.1%
61.0%
66.0%
67.1%
62.3%
60.5%
64.3%
66.1%

LOAN T YPE
TABLE 5: ALL AUSTRALIA
MONTH
Nov 10
Dec 10
Jan 11
Feb 11
Mar 11
Apr 11
May 11
June 11
July 11
Aug 11
Sep 11
Oct 11
Nov 11
Dec 11

BASIC
15.0%
13.7%
14.6%
14.2%
11.8%
10.6%
11.7%
10.6%
13.2%
11.7%
9.9%
8.8%
8.9%
9.4%

EQUITY
9.5%
9.0%
7.7%
9.7%
9.3%
9.7%
8.9%
9.3%
8.6%
9.6%
7.7%
8.1%
7.2%
7.3%

FIXED
9.0%
12.6%
9.0%
6.6%
6.6%
6.4%
8.4%
8.2%
7.9%
9.4%
16.6%
20.4%
17.2%
19.2%

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INTRO
7.4%
8.9%
11.9%
13.2%
15.6%
14.3%
12.5%
11.5%
8.5%
6.0%
4.7%
3.9%
3.5%
3.9%

STANDARD
59.1%
55.7%
56.7%
56.2%
56.6%
58.9%
58.5%
60.4%
61.8%
63.2%
60.9%
58.6%
63.1%
60.2%

DEFINITIONS
1. Standard Variable: includes the full range of features available.
2. Basic Variable: without some features, lower fees and rates.
3. Intro: also known as honeymoon where the borrower is offered a very cheap initial rate (fixed or variable)
before the loan reverts to a Standard Variable.
4. Fixed: interest rate is fixed for a nominated period before it reverts to a Standard Variable.
5. Equity: also known as line of credit allows the borrower to draw out money up to a specified limit. Generally
more expensive than Standard Variable loans.
NOTE TO EDITORS
AFG is Australias largest mortgage broker. Established in 1994, the company now provides more than 20% of brokers
nationwide with access to Australias leading lending institutions, and has a mortgage book in excess of $65 billion.

www.afgonline.com.au