Investor activity up, with deal flow shifting towards banking majors
Mortgage aggregator Australian Finance Group (AFG) has reported its highest-ever quarterly mortgage lodgement volume of $30.6 billion, up 10.5% from the previous quarter and 26.5% year-on-year.
AFG brokers processed 43,799 lodgementsb in the first quater of its 2026 financial year, with investor activity comprising 36% of new loans, rising four percentage points over the year.
Refinancing activity dropped to 17% – down from 26% in the same quarter last year.
AFG chief executive David Bailey (pictured) said the results demonstrated “strong market activity, highlighted by an increasing presence of investors and a continued rise in average loan sizes”.
The average national loan size jumped above $698,000, with Western Australia leading the year-on-year increases at 11.7%. NSW topped lodgement volumes neared $10 billion, followed by Victoria at just under $9 billion.
Also of note, major lenders have regained ground, holding 59% of all lodgement market share, up from 55.9% a year ago.
AFG’s white-label AFG Home Loans product captured a 6.25% share of all broker lodgements, with AFG Securities accounting for 71% of that volume – a ten-year high.
“First home buyer activity remains stable at 11%, consistent with the same quarter last year but slightly lower than the previous quarter. Affordability pressures and competition from investors may be influencing this segment,” added Bailey.
