AFG June 2025 Quarter Index

Australian Finance Group (AFG) has announced a record-breaking fourth quarter for fiscal year 2025, lodging over $27 billion in home loans, marking a 19% year-on-year increase and the highest quarterly volume in the company's history.

Summary

• Australian Finance Group Ltd (AFG) concluded the 2025 financial year with a record-breaking fourth quarter, lodging more than $27 billion in home loans.
• This represents a 19% increase year-on-year and is the highest quarterly volume ever recorded by the company.
• For the full financial year 2025, AFG's total lodgements surpassed $100 billion.
• Nationally, AFG brokers lodged 40,810 loans in Q4 FY25, which is the highest number ever recorded and only the second time the company has surpassed the 40,000 mark, with the last instance being Q1 of 2022.
• State-by-state figures show strong performance, with New South Wales leading at $8.88 billion in lodgements, a 16% increase compared to Q4 2024.
• Western Australia saw a 25% increase to $3.67 billion, and South Australian brokers lodged $1.71 billion, up 18% from Q4 2024.
• Investor activity has risen to 34%, a level not seen since financial year 2017.
• The national Loan to Value Ratio (LVR) dropped to a record low of 63.1%, suggesting borrowers are leveraging equity.
• The average mortgage size climbed to $678,333, reflecting sustained strength in property prices.
• Fixed rate uptake remained low at just 2.3% of customers choosing to lock in rates.

Sentiment

Score: 9

Explanation: The document conveys a highly positive sentiment, emphasizing record-breaking performance in lodgements, loan volumes, and strong growth across key states, alongside favorable market indicators like rising investor activity and low LVRs.

Positives

• AFG achieved its highest quarterly volume in company history with over $27 billion in home loan lodgements in Q4 FY25.
• The company saw a significant 19% year-on-year increase in lodgements for the quarter.
• Total lodgements for the entire financial year 2025 surpassed $100 billion, indicating strong annual performance.
• AFG brokers set a new record for the number of loans lodged, reaching 40,810 nationally in Q4 FY25.
• New South Wales, Western Australia, and South Australia all demonstrated strong year-on-year growth in lodgements, with increases of 16%, 25%, and 18% respectively.
• Investor activity has increased to 34%, reflecting renewed confidence in the property market.
• The national Loan to Value Ratio (LVR) dropped to a record low of 63.1%, suggesting prudent borrowing and equity utilization.
• The average mortgage size climbed to $678,333, indicating sustained strength in property prices.

Future Outlook

AFG is well-positioned to continue supporting Australians with lending solutions as they navigate a complex lending environment, heading into the new financial year with strong momentum.

Management Comments

• AFG CEO David Bailey stated that the results reflect continued strength in the broker channel and consumer confidence in the choice brokers provide.
• Mr. Bailey highlighted that nationally, AFG brokers lodged 40,810 loans, which is the highest number ever recorded and only the second time they've surpassed the 40,000 mark.
• Mr. Bailey also noted that investor activity is on the rise, reaching 34%, a level not seen since financial year 2017.
• Mr. Bailey concluded by stating that AFG is well-positioned to continue supporting Australians with lending solutions as they navigate a complex lending environment.

Industry Context

The document highlights the continued strength and growing consumer confidence in the mortgage broker channel, indicating that brokers are increasingly preferred for navigating the complex lending environment. The rise in investor activity and the drop in LVR suggest broader market trends of leveraging equity and sustained property price strength.

Comparison to Industry Standards

• The document does not provide specific comparisons to global benchmarks or named comparable companies or projects.
• It primarily focuses on AFG's performance relative to its own historical data and general market trends within Australia, such as the market share split between major and non-major lenders.

Stakeholder Impact

• Shareholders are likely to benefit from the record financial performance and strong growth metrics, potentially leading to increased shareholder value.
• Mortgage brokers associated with AFG are positively impacted by the high volume of loans lodged, indicating strong business activity and client demand.
• Customers are benefiting from the choice and support provided by brokers in a complex lending environment, as highlighted by the CEO.
• Employees of AFG may experience positive morale and job security due to the company's strong financial results and market position.

Key Dates

Keywords

Mortgage, Home loans, Lending, Broker channel, AFG, Financial year 2025, Q4, Lodgements, Loan volume, LVR, Investor activity, Property prices, Fixed rate uptake