Australian Finance : AFG Dec 2021 Qtr Index

Market Release

only20 January 2022

Market Announcements Office ASX Limited

Exchange Centre

20 Bridge Street SYDNEY NSW 2000

useDear Sir/Madam

AFG MORTGAGE INDEX - Q2 2022

personalPlease see attached statement regarding AFG's Mortgage Index for the second quarter of financial year 2022. Authorised for disclosure by:

Li a Bevan

Company Secretary

For

CONTACT DETAILS
Alison Clarke, AFG Head of Corporate Communications	Mob [phone]
David Bailey, CEO	Tel [phone]

onlyuseAFG Index

personalMarket Release For

January 2022

Brokers in demand

AFG (ASX:AFG) brokers finished the 2021 calendar year on a high, with record volumes revealing residential onlylodgements were up 24% on the same period last year.

AFG CEO David Bailey said the company lodged $24.6 billion for the three months to December 2021. "AFG brokers have navigated the challenges presented by the latest wave of disruption caused by the pandemic to help their customers secure new homes, upgrade their existing homes or take up opportunities to save by refinancing their existing home loans.

"Residential lodgement volumes across the final three months of 2021 increased in Victoria, Queensland, South Australia, and Western Australia whilst activity in New South Wales slowed marginally during the quarter.

"The national average mortgage size has increased to $624,000. Pleasingly, the loan to value ratio (LVR) has dropped useonce again to now be sitting at 68.7%.

When comparing buyer types, investors are up from 21% in the same period last year to 26% in Q2 FY22. Investors' hare of the market has hovered in the range of 20 to 30 per cent across the past four years.

"Refinancers have been active, up from 22% to 25% on the same period last year however down from highs of 27% and 26% through the balance of 2021.

"The percentage of homeowners looking to upgrade their home is climbing once more, with Upgraders now personalrepresenting 43% of the market. First Home Buyers however have dropped to 13%, down from 22% in the same period

l st year.

"In a sign of a healthy level of competition, the country's non-major lenders' market share is up to 46.5%," he said. "Their largest market share was recorded in Q2 FY20 when they reached 46.9%.

"Conversely the Big 4 Banks and their associated brands were down from 57.31% last quarter to 53.55%, their second l west market share recorded in the past 10 years.

ANZ and the CBA group registered the biggest drops, of 2.02% and 3.36% respectively.

The Westpac Group's market share lifted from 15% to 15.48%, driven by their subsidiary brands, Bank of Melbourne, Bank SA and St George, whilst Westpac dropped 8.36% to 7.95% for the quarter. NAB was up from 10.69% to 11.83%.

"Increases amongst the non-majors were evenly shared however Beyond Bank doubled from 0.23% to 0.45%, ING went from 3.28% to 3.92% and Macquarie jumped from 9.17% to 10.49%.

Lender turnaround times for full approval have stabilised at 21.8 days for the past two quarters.

"Australian home buyers' brief romance with fixed rate products, fueled by the short-term funding advantages provided to the ADIs, appears to be waning with the number of people choosing to fix their interest rates falling from 38.2% in

Forthe prior quarter to 34% for Q2 FY22.

"With brokers now writing two-thirds of all home loans in Australia these results clearly demonstrate the value of the channel to homebuyers," he said. "By driving competition between lenders and providing a vital distribution network for lenders without branches, brokers deliver options for consumers. And consumers clearly value that choice."

-ends-

For media enquiries, please contact

Alison Clarke

Head of Corporate Communications
P [phone] | P 0402 781 367
afgonline.com.au	2

Table 1

	AFG Mortgages lodged
only	Fiscal					First Home	Refinance		Interest	Principal &
	Fiscal	Lodge #	Lodge Volume	Avg Loan	Inv %	Upgrader %
	Quarter	Buyers %	%	Only %	Interest %
2013	1	21,572	$8,416,984,858	$390,181	36%	15%	34%	28%	53%	47%
2013	2	21,409	$8,487,848,309	$396,462	36%	12%	34%	31%	51%	48%
2013	3	21,210	$8,323,131,168	$392,415	36%	12%	33%	31%	52%	48%
2013	4	24,446	$9,799,862,723	$400,878	37%	11%	33%	30%	54%	46%
use
2014	1	25,819	$10,542,068,141	$408,307	38%	10%	31%	32%	54%	46%
2014	2	25,896	$10,984,615,499	$424,182	39%	9%	32%	31%	56%	44%
2014	3	24,231	$10,302,849,053	$425,193	39%	9%	32%	31%	57%	43%
	2014	4	26,966	$11,551,435,673	$428,370	39%	9%	34%	30%	58%	42%
2015	1	28,132	$12,204,183,662	$433,819	39%	8%	34%	31%	58%	42%
2015	2	28,664	$12,892,326,077	$449,774	39%	7%	36%	30%	59%	41%
2015	3	27,496	$12,267,821,050	$446,167	40%	8%	35%	30%	59%	41%
2015	4	31,230	$14,355,020,533	$459,655	40%	8%	37%	28%	59%	40%
personal
2016	1	29,919	$14,074,122,292	$470,408	33%	9%	36%	34%	54%	46%
2016	2	28,849	$13,707,774,726	$475,156	31%	7%	38%	35%	50%	50%
2016	3	27,275	$12,899,531,564	$472,943	33%	8%	38%	34%	48%	52%
2016	4	30,360	$14,492,569,632	$477,357	34%	7%	39%	33%	47%	53%
2017	1	31,572	$15,124,154,412	$479,037	32%	8%	38%	34%	46%	54%
2017	2	30,742	$14,979,398,027	$487,262	34%	9%	38%	32%	47%	53%
2017	3	29,038	$14,150,343,319	$487,304	32%	10%	35%	34%	44%	55%
2017	4	30,056	$14,551,070,209	$484,132	31%	10%	29%	39%	33%	67%
	2018	1	30,471	$14,948,327,171	$490,576	29%	13%	25%	41%	19%	81%
2018	2	29,673	$14,813,114,159	$499,212	28%	13%	22%	44%	19%	81%
2018	3	27,723	$13,794,277,704	$497,575	28%	13%	23%	43%	20%	80%
2018	4	28,865	$14,542,901,956	$503,825	28%	13%	23%	43%	19%	81%
2019	1	27,869	$14,163,790,155	$508,227	27%	14%	24%	43%	19%	81%
2019	2	25,525	$12,967,945,442	$508,049	27%	13%	24%	43%	18%	81%
2019	3	23,035	$11,613,654,328	$504,174	26%	14%	25%	43%	19%	81%
2019	4	25,244	$12,977,940,620	$514,100	28%	14%	28%	39%	20%	80%
2020	1	29,141	$15,700,098,779	$538,763	26%	15%	28%	40%	18%	82%
2020	2	28,602	$15,368,708,504	$537,330	26%	15%	27%	41%	18%	82%
2020	3	28,335	$15,344,491,297	$541,538	25%	15%	30%	39%	17%	83%
2020	4	31,070	$16,853,561,725	$542,438	25%	15%	32%	38%	16%	84%
2021	1	35,442	$18,187,912,093	$513,174	21%	23%	23%	40%	14%	86%
2021	2	36,548	$19,837,527,015	$542,780	21%	22%	22%	42%	12%	88%
2021	3	35,831	$20,558,636,564	$573,767	23%	18%	23%	43%	14%	86%
For
	2021	4	38,160	$22,638,426,110	$593,250	25%	14%	27%	42%	16%	84%
2022	1	40,098	$24,115,142,335	$601,405	27%	14%	26%	41%	17%	83%
2022	2	39,422	$24,602,349,728	$624,077	26%	13%	25%	43%	17%	83%

3

Table 2

Big 4 Banks & their Associated Brands vs Non Major Lender market share

only		Lodgement	Investment	First Home	Refinance	Upgrader	Interest Only	Principal &
	Volume	Buyers Volume	Volume	Volume	Volume	Interest Volume
	Fiscal	Fiscal	Major	Non-	Major	Non-	Major	Non-	Major	Non-	Major	Non-	Major	Non-	Major	Non-
	Quarter	Major	Major	Major	Major	Major	Major	Major
2013	1	77.1%	22.9%	79.4%	20.6%	74.5%	25.5%	72.9%	27.1%	79.5%	20.5%	81.3%	18.7%	72.4%	27.6%
2013	2	77.6%	22.4%	80.8%	19.2%	74.2%	25.8%	73.6%	26.4%	79.3%	20.7%	81.6%	18.4%	73.4%	26.6%
2013	3	78.2%	21.8%	80.0%	20.0%	77.1%	22.9%	73.4%	26.6%	80.4%	19.6%	82.2%	17.8%	74.0%	26.0%
2013	4	77.0%	23.0%	79.3%	20.7%	74.5%	25.5%	72.6%	27.4%	79.3%	20.7%	80.4%	19.6%	73.1%	26.9%
2014	1	74.1%	25.9%	76.5%	23.5%	72.8%	27.2%	67.3%	32.7%	76.9%	23.1%	77.0%	23.0%	70.7%	29.3%
2014	2	73.6%	26.4%	75.4%	24.6%	72.3%	27.7%	67.5%	32.5%	76.1%	23.9%	76.5%	23.5%	69.8%	30.2%
use
	2014	3	74.3%	25.7%	77.1%	22.9%	71.1%	28.9%	68.3%	31.7%	76.7%	23.3%	77.3%	22.7%	70.5%	29.5%
2014	4	74.8%	25.2%	77.3%	22.7%	71.6%	28.4%	69.3%	30.7%	77.9%	22.1%	77.8%	22.2%	70.5%	29.5%
2015	1	73.7%	26.3%	76.8%	23.2%	69.7%	30.3%	66.5%	33.5%	77.3%	22.7%	77.0%	23.0%	69.1%	30.9%
2015	2	69.8%	30.2%	74.2%	25.8%	67.0%	33.0%	62.5%	37.5%	72.6%	27.4%	73.9%	26.1%	63.8%	36.2%
2015	3	73.4%	26.6%	76.4%	23.6%	72.3%	27.7%	67.1%	32.9%	75.5%	24.5%	76.9%	23.1%	68.3%	31.7%
2015	4	71.7%	28.3%	74.8%	25.2%	70.7%	29.3%	64.8%	35.2%	75.5%	24.5%	76.5%	23.5%	64.9%	35.1%
2016	1	73.7%	26.3%	72.7%	27.3%	73.8%	26.2%	68.9%	31.1%	78.1%	21.9%	78.2%	21.8%	68.6%	31.4%
2016	2	69.9%	30.1%	71.1%	28.9%	70.4%	29.6%	61.2%	38.8%	75.4%	24.6%	76.6%	23.4%	63.4%	36.6%
2016	3	70.6%	29.4%	72.0%	28.0%	70.0%	30.0%	64.8%	35.2%	74.5%	25.5%	76.2%	23.8%	65.4%	34.6%
2016	4	70.9%	29.1%	73.9%	26.1%	72.2%	27.8%	66.2%	33.8%	73.4%	26.6%	75.0%	25.0%	67.3%	32.7%
2017	1	71.1%	28.9%	74.4%	25.6%	77.0%	23.0%	65.4%	34.6%	73.4%	26.6%	75.6%	24.4%	67.4%	32.6%
2017	2	65.2%	34.8%	68.4%	31.6%	68.3%	31.7%	58.2%	41.8%	69.0%	31.0%	69.8%	30.2%	61.3%	38.7%
2017	3	65.6%	34.4%	67.3%	32.7%	70.2%	29.8%	58.0%	42.0%	69.4%	30.6%	69.0%	31.0%	62.8%	37.2%
2017	4	64.7%	35.3%	68.5%	31.5%	70.0%	30.0%	57.5%	42.5%	66.0%	34.0%	62.6%	37.4%	65.7%	34.3%
2018	1	64.3%	35.7%	68.9%	31.1%	68.0%	32.0%	57.6%	42.4%	64.2%	35.8%	58.3%	41.7%	65.9%	34.1%
2018	2	64.1%	35.9%	66.5%	33.5%	69.5%	30.5%	57.5%	42.5%	64.3%	35.7%	63.5%	36.5%	64.3%	35.7%
2018	3	63.2%	36.8%	65.0%	35.0%	67.6%	32.4%	58.9%	41.1%	63.2%	36.8%	65.0%	35.0%	62.9%	37.1%
2018	4	59.2%	40.8%	57.2%	42.8%	68.4%	31.6%	54.1%	45.9%	59.9%	40.1%	59.5%	40.5%	59.3%	40.7%
personal
	2019	1	59.7%	40.3%	57.1%	42.9%	68.2%	31.8%	55.4%	44.6%	60.5%	39.5%	57.8%	42.2%	60.2%	39.8%
2019	2	57.9%	42.1%	56.5%	43.5%	67.8%	32.2%	53.1%	46.9%	58.1%	41.9%	57.4%	42.6%	58.1%	41.9%
2019	3	58.6%	41.4%	56.5%	43.5%	68.2%	31.8%	53.1%	46.9%	59.6%	40.4%	60.2%	39.8%	58.4%	41.6%
2019	4	57.6%	42.4%	56.2%	43.8%	65.5%	34.5%	51.5%	48.5%	59.0%	41.0%	55.4%	44.6%	58.3%	41.7%
2020	1	54.0%	46.0%	50.1%	49.9%	65.1%	34.9%	45.0%	55.0%	57.1%	42.9%	47.5%	52.5%	55.5%	44.5%
2020	2	53.1%	46.9%	48.2%	51.8%	64.0%	36.0%	46.7%	53.3%	55.2%	44.8%	44.8%	55.2%	55.0%	45.0%
2020	3	59.5%	40.5%	54.0%	46.0%	61.7%	38.3%	61.0%	39.0%	60.6%	39.4%	52.5%	47.5%	61.1%	38.9%
2020	4	66.8%	33.2%	64.4%	35.6%	66.9%	33.1%	71.1%	28.9%	65.7%	34.3%	62.2%	37.8%	67.7%	32.3%
For
	2021	1	58.9%	41.1%	54.6%	45.4%	63.9%	36.1%	58.1%	41.9%	58.9%	41.1%	54.6%	45.4%	59.6%	40.4%
2021	2	58.7%	41.3%	54.6%	45.4%	65.0%	35.0%	58.0%	42.0%	57.5%	42.5%	54.4%	45.6%	59.4%	40.6%
2021	3	57.1%	42.9%	51.6%	48.4%	62.0%	38.0%	58.1%	41.9%	56.9%	43.1%	51.8%	48.2%	58.1%	41.9%
2021	4	59.3%	40.7%	54.6%	45.4%	64.8%	35.2%	61.1%	38.9%	59.3%	40.7%	54.0%	46.0%	60.3%	39.7%
2022	1	57.3%	42.7%	53.4%	46.6%	65.8%	34.2%	53.1%	46.9%	58.7%	41.3%	53.3%	46.7%	58.2%	41.8%
2022	2	53.5%	46.5%	51.9%	48.1%	63.9%	36.1%	47.3%	52.7%	54.5%	45.5%	52.2%	47.8%	53.9%	46.1%

4