AFG Brokers Lodge $29.5 Billion in Strongest March Quarter on Record

Record March Quarter Defies Rising Rates

Australian Finance Group (ASX:AFG) has posted its strongest March quarter on record for FY26, with brokers lodging 40,784 mortgages valued at $29.54 billion. This represents a robust 22.67% increase compared to the same period last year, highlighting resilient borrower demand amid an upward interest rate cycle.

CEO David Bailey attributed the surge to sustained broker-led competition, which continues to expand choice across both major and non-major lenders. Despite the seasonally quieter quarter due to holidays, borrower appetite remained strong, underscoring the trusted advisory role brokers play in a dynamic lending environment.

State Markets and Loan Profiles

New South Wales led the pack with $9.45 billion in lodgements, followed by Victoria at $8.49 billion and Queensland at $5.46 billion. Western Australia contributed $4.19 billion, South Australia $1.94 billion, and the Northern Territory $23.2 million. While all states showed growth year-on-year, volumes were down from the previous quarter, consistent with expected seasonal trends.

Average loan sizes remained steady, with NSW and Victoria recording the highest averages at $807,607 and $706,949 respectively. The national average loan-to-value ratio (LVR) dipped slightly to 64%, reflecting cautious lending amid inflation concerns.

Shifts in Borrower Behaviour

Investor participation held firm at 35%, but first home buyer demand eased to 12%. Refinancing activity fell to a record low of 15%, continuing a downward trend observed in recent quarters. Meanwhile, upgrader activity climbed to 43%, the highest level in four years, suggesting a shift in borrower focus toward property improvements and moves within the market.

Variable rate loans dominated, accounting for 86.5% of lodgements. Fixed rate lending inched up from 3.2% to 5.4%, though this increase largely predated recent shifts in the long-term rate outlook. The major banks and their associated brands held a 60% share of total lodgements, with non-majors maintaining a significant 40%, including 43% of investment loans and 44% of refinancing flows.

AFG Securities Continues Momentum

AFG’s proprietary lending arm, AFG Securities, contributed $1.5 billion in lodgements; the second highest quarterly performance on record; marking a 79% increase year-on-year. The loan book closed the quarter at a record $6.7 billion, supported by record RMBS issuances totaling $2.2 billion over the past 12 months and successful warehouse facility rollovers.

This strong funding position provides AFG with margin resilience and flexibility to access capital markets amid evolving conditions. CEO Bailey noted that while inflation risks remain a concern for borrowers, wage growth and household balance sheet strength continue to underpin robust lodgement volumes.

The sustained growth in AFG Securities and the broader broker network follows a record half-year profit and broker expansion, reinforcing the group’s strategic positioning in a competitive mortgage landscape.