NATION AL

AVERAGE HOME LOAN LEAPS TO $418,000 BUT GEARING

REMAINS CONSTANT
2 October 2013
New mortgages processed in September were for an average of $418,000
a leap of $17,000 from two months ago, but borrowers are not
proportionally taking on any more debt according to AFG, Australias largest
mortgage broker. AFGs latest Mortgage Index shows that the average LVR
(Loan to Value Ratio the value of a loan expressed as a proportion of the
value of a property) has remained consistently around 68% since the start
of the year. The growth in loan size but unchanged LVR reflects growing
confidence in property among investors and other borrowers with higher
equity levels.
Average loan sizes varied widely from state to state. NSW has the highest
average home loan of $507k, having broken through the half a million dollar
mark in August. WA is next on $421k, with VIC on $397k, NT on $374k,
QLD on $357k, and SA on $324k.
Mark Hewitt, General Manager of Sales and Operations says: What these
figures show is that whilst borrowers are becoming more confident they
havent forgotten the lessons of over-gearing learned during the GFC. With
the election now behind us and a sense of greater policy certainty,
borrowers are responding to the combination of historically low rates, good
affordability and rising property values with a strong, but sustainable
momentum. Talk of property bubbles, including those driven by SMSFs, is
overstated at this point.
Across the nation, different states reflect very different characteristics.
Almost half of all home loans processed in NSW were for investors, with only
4% for first home buyers. By contrast, in WA 25% of new loans were for
first home buyers and 28% for investors. SA is seeing a rise in investors
from 27% in July to 35% last month, while in Queensland there has been a
gradual creeping back of first home buyers (7% of new home loans) after
the withdrawal of first home buyers grants reduced their share to just 4.5%
last December.
AFG recorded another record-breaking month in September for mortgage
volume, processing $3,624 million in home loans.

ENDS

Full statistics for each state are available at www.afgonline.com.au In the

News.

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

July 12
Aug 12
Sept 12
Oct 12
Nov 12
Dec 12
Jan 13
Feb 13
Mar 13
Apr 13
May 13
June 13
July 13
Aug 13
Sept 13

7,027
7,730
6,882
7,719
7,831
5,912
5,893
7,480
7,898
8,005
8,921
7,575
8,482
8,767
8,660

$2,732 m
$3,071 m
$2,708 m
$3,103 m
$3,094 m
$2,376 m
$2,261 m
$2,956 m
$3,181 m
$3,200 m
$3,608 m
$3,079 m
$3,407 m
$3,613 m
$3,624 m

$388k
$397k
$393k
$402k
$395k
$402k
$383k
$395k
$402k
$399k
$404k
$406k
$401k
$412k
$418k

35.2%
36.4%
35.5%
35.8%
33.9%
38.0%
36.0%
34.7%
37.1%
35.9%
36.5%
37.9%
35.9%
38.7%
38.1%

17.3%
15.9%
13.2%
15.4%
12.9%
12.5%
13.2%
12.9%
12.9%
12.4%
13.6%
12.8%
11.6%
11.3%
11.3%

36.9%
35.4%
35.2%
34.8%
34.9%
36.3%
34.1%
34.4%
35.7%
35.6%
34.0%
36.6%
35.2%
33.5%
31.5%

MAJOR VS NON MAJOR LENDER MARKET SHARE

TABLE 2 : BY BUYER T YPE

MONTH

MAJOR

NONMAJOR

MAJOR

NONMAJOR

FIRST HOME
BUYERS
MAJOR
NONMAJOR

2012 08
2012 09
2012 10
2012 11
2012 12
2013 01
2013 02
2013 03
2013 04
2013 05
2013 06
2013 07
2013 08
2013 09

77.8%
76.0%
77.1%
78.4%
77.4%
76.5%
78.1%
79.3%
78.9%
77.2%
75.1%
73.6%
74.9%
73.7%

22.2%
24.0%
22.9%
21.6%
22.6%
23.5%
21.9%
20.7%
21.1%
22.8%
24.9%
26.4%
25.1%
26.2%

75.9%
75.2%
73.7%
74.0%
74.0%
73.6%
73.7%
74.2%
74.7%
72.9%
70.4%
68.2%
66.8%
67.1%

24.1%
24.8%
26.3%
26.0%
26.0%
26.4%
26.3%
25.8%
25.4%
27.1%
29.6%
31.8%
33.2%
32.9%

74.6%
74.3%
71.7%
74.9%
77.6%
75.2%
78.2%
77.8%
75.2%
74.3%
74.6%
71.9%
73.7%
73.2%

TOTAL MORTGAGES

REFINANCE

www.afgonline.com.au

25.4%
25.7%
28.3%
25.1%
22.4%
24.8%
21.8%
22.2%
24.8%
25.7%
25.4%
28.1%
26.3%
26.8%

INVESTORS
MAJOR

NONMAJOR

81.8%
81.3%
80.9%
80.8%
80.7%
80.5%
80.1%
80.5%
80.4%
79.7%
77.9%
75.2%
77.9%
79.0%

18.2%
18.7%
19.1%
19.2%
19.3%
19.5%
19.9%
19.5%
19.6%
20.3%
22.0%
24.8%
22.1%
21.0%

AVERAGE MORTGAGE SIZE IN DOLL ARS

TABLE 3: STATE BY STATE
MONTH
2012 07
2012 08
2012 09
2012 10
2012 11
2012 12
2013 01
2013 02
2013 03
2013 04
2013 05
2013 06
2013 07
2013 08
2013 09

AUSTRALIA
388,919
397,303
393,625
402,120
395,149
402,060
383,810
395,270
402,848
399,830
404,452
406,573
401,749
412,125
418,550

NSW
441,236
476,061
454,687
478,148
473,172
471,157
443,931
453,231
477,063
479,400
486,232
494,423
487,312
505,365
507,859

QLD
343,672
348,579
347,953
347,026
348,444
340,237
342,836
356,581
349,322
341,419
348,914
344,075
341,665
352,671
357,343

SA
314,866
325,877
304,005
320,793
315,773
310,840
325,629
340,407
333,937
320,214
308,103
322,774
321,050
315,098
324,148

VIC
399,317
385,407
380,811
396,997
379,949
392,193
376,871
379,198
385,252
388,968
382,428
388,630
387,300
391,988
397,162

WA
396,215
402,290
419,076
412,952
403,944
431,685
394,396
409,385
414,583
406,558
420,735
408,832
397,351
410,861
421,761

NT
415,627
373,628
412,581
375,339
365,993
426,906
355,608
397,702
352,875
377,217
399,894
435,456
435,998
392,414
374,346

WA
68.2%
70.7%
73.6%
71.6%
70.8%
70.8%
71.2%
70.0%
70.0%
70.8%
71.4%
70.9%
71.8%
73.8%

NT
66.8%
68.6%
67.1%
64.4%
69.1%
64.2%
68.1%
69.4%
65.6%
66.1%
66.5%
64.8%
61.4%
60.5%

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

TABLE 4: STATE BY STATE

2012 08
2012 09
2012 10
2012 11
2012 12
2013 01
2013 02
2013 03
2013 04
2013 05
2013 06
2013 07
2013 08
2013 09

AUSTRALIA
68.6%
69.0%
70.5%
69.0%
68.5%
67.9%
68.9%
68.8%
68.6%
68.5%
68.6%
68.4%
68.2%
68.5%

NSW
69.1%
68.0%
69.3%
67.5%
66.7%
64.9%
67.3%
66.8%
67.3%
66.5%
66.3%
66.2%
66.6%
68.0%

QLD
67.8%
68.6%
70.5%
68.3%
68.1%
69.0%
68.3%
67.8%
68.0%
69.1%
67.2%
68.4%
70.3%
69.0%

SA
69.7%
69.2%
70.1%
72.1%
66.9%
67.3%
68.8%
68.3%
68.9%
68.1%
69.9%
68.9%
67.8%
68.5%

www.afgonline.com.au

VIC
70.1%
69.3%
72.4%
69.8%
69.2%
70.9%
69.8%
70.7%
72.0%
70.1%
70.1%
71.0%
71.0%
71.2%

LOAN T YPE
TABLE 5: ALL AUSTRALIA
MONTH
Aug 12
Sept 12
Oct 12
Nov 12
Dec 12
Jan 13
Feb 13
Mar 13
Apr 13
May 13
June 13
July 13
Aug 13
Sept 13

BASIC
9.2%
9.0%
9.5%
8.7%
9.1%
9.0%
8.7%
6.1%
4.9%
5.3%
4.4%
4.5%
4.2%
3.4%

EQUITY
6.8%
6.6%
5.9%
5.7%
6.3%
5.6%
5.2%
5.6%
6.2%
5.4%
5.8%
5.1%
5.6%
4.7%

FIXED
19.9%
21.5%
20.8%
21.6%
18.7%
16.3%
24.1%
29.6%
30.7%
28.5%
27.4%
28.9%
26.1%
27.3%

INTRO
5.2%
5.7%
5.5%
4.8%
2.6%
2.9%
4.3%
5.0%
4.9%
5.0%
5.2%
5.8%
5.6%
6.0%

STANDARD
58.8%
57.2%
58.2%
59.2%
63.3%
66.0%
57.6%
53.7%
53.2%
55.8%
57.2%
55.6%
58.5%
58.5%

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