AFG Brokers Record $28.1 Billion Home Loans in Q4 FY26 Led by Western Australia

Record June Quarter Despite Uneven State Performance

Australian Finance Group Ltd (ASX:AFG) closed FY26 with a bang, reporting a record $28.1 billion in home loan lodgements for its June quarter; the strongest June quarter ever recorded by the mortgage aggregator. Nearly 39,000 mortgages were lodged, marking a 1.4% increase on the prior year and building on the momentum from the strongest March quarter on record.

However, this headline figure masks a pronounced geographic split. Western Australia stood out as the powerhouse, posting a 14.6% year-on-year increase to $4.21 billion in residential lodgements and the only state to grow quarter-on-quarter (+0.6%). In contrast, the traditional heavyweights; New South Wales, Victoria, and Queensland; all saw modest declines of around 1.8%, 0.6%, and 1.8% respectively. South Australia bucked the broader east coast trend with a 7.9% rise to $1.85 billion.

Loan Size and Product Mix Reflect Market Shifts

The average loan size nationally hit a record high of $727,345, up 7.2% year-on-year, while the national loan-to-value ratio (LVR) dropped to 63%, the lowest in AFG’s data history. Borrowers showed a clear preference for variable-rate products, which accounted for 87.5% of lodgements, while fixed-rate loans retreated to 3.8% after a spike in the prior quarter.

Upgrader activity surged to 44% of residential lodgements, a level only seen twice before in recent years, highlighting a growing trend of homeowners trading up. Meanwhile, investor participation slightly dipped from 35% to 34%, with June softening further to 32%. First Home Buyer demand remained steady at 12%, showing no immediate impact from recent Federal Budget changes. Refinancing ticked up to 16%, potentially signalling the end of a long decline in that segment.

AFG Securities and Home Loans Drive Growth

AFG’s securitised lending arm, AFG Securities, finished FY26 with a 30% jump in its loan book to $7.1 billion, maintaining disciplined credit standards and solid arrears performance. Lodgements for the quarter reached $1.4 billion, the strongest June quarter on record, with June itself the highest month ever recorded.

AFG Home Loans also delivered a standout performance, with lodgements rising 28% year-on-year to $2.28 billion and capturing a 7.9% market share of total AFG broker lodgements; the highest in recent years. CEO David Bailey attributed this growth to the strength and breadth of AFG’s proprietary product portfolio and broker trust.

Major Lender Market Shares and Fiscal Policy Impact

Among lenders, Westpac brands led with an 18% market share for the quarter, narrowly ahead of Commonwealth Bank and ANZ at 16%, with Macquarie close behind at 14%. NAB held steady at 8% but showed a strong weighting towards investor lending at 36%.

Mr Bailey noted that the Federal Budget changes announced in May appeared to have caused a temporary pause or reassessment among some borrowers, particularly investors, but described this as a transitional phase rather than a structural shift in demand. The resilience of the broker channel and Western Australia’s resource-driven, supply-constrained housing market were seen as key factors underpinning the quarter’s performance.