Australian Finance : AFG March 2022 Qtr Index

13 April 2022

Market Release

Market Announcements Office ASX Limited

Exchange Centre 20 Bridge Street SYDNEY NSW 2000

Dear Sir/Madam

AFG MORTGAGE INDEX - Q3 2022

Please see attached statement regarding AFG's Mortgage Index for the third quarter of financial year 2022.

Authorised for disclosure by:

Lisa Bevan Company Secretary

CONTACT DETAILS

Alison Clarke, AFG Head of Corporate Communications David Bailey, CEO

Mob [phone]

Tel [phone]

AFG Index

Market Release

Australian Finance Group Ltd | Australian Credit Licence 389087 | ACN 066 385 822

AFG reports solid quarter as majors take a tumble

(ASX:AFG) Australian Finance Group Ltd has reported another strong quarter for the company's 3,500+ brokers with home loan lodgements up 6.9% on the same period last year. Close to $22 billion in lodgements were recorded in the third quarter of the 2022 financial year, with non-major lenders once again closing the gap on the majors to now be at 49% of the market.

AFG CEO David Bailey said the company's brokers had come through a period of record volumes and had delivered outstanding support to their customers. "The traditionally quieter new year period was marked by strong customer demand with homebuyers navigating the end of 'cheap money' as the big banks' Term Funding Facility came to an end."

"As a result, fixed rate volumes have plummeted," he said. "The record low interest rate environment is over, and as lenders evaluate their future funding costs, they have been increasing fixed rates. The percentage of people choosing to fix their home loan has dropped from highs of 38.2% in Q1 22 to now be down to 20%. This is the lowest it has been in two years.

"This activity saw the market share of the country's major lenders and their associated brands drop from 53.5% last quarter to 50.8% by the end of March 2022, the lowest level recorded in our time series.

Among the majors, ANZ was the only lender to make up ground, lifting from 7.87% last quarter to 8.72% at the end of the Q3 22. NAB took the biggest hit, dropping 2.63% from 11.83% in Q2 to 9.2% for the past quarter.

For the non-majors Macquarie made the most gains compared to the same period last year, increasing from 9.91% to 11.28%, AFG Home Loans grew to 10.19%, up from 9.11% a year ago, and Suncorp came in at 3.67% for the quarter, up from 2.63% in Q3 21.

"The average loan size is down by $8,409 on last quarter to $615,668 and Loan to Value Ratio (LVR) has also dropped to 66.8%.

"First home buyers fell by 5% on the same period last year, so it was pleasing to see that the federal government's budget initiatives will help respond to this dip," he said. "Investor loans maintained their level from the prior quarter, at 26%. This is an increase of 3% on the same period last year.

Interest Only products have been steady at 17% for the past 3 quarters. Refinancers have dropped slightly to 24%, whilst Upgraders were once again the drivers of most of the activity at 44% of lodgements.

"Pleasingly, lender turnaround times are once again steady at 21.9 days from application to formal approval. The easing in volumes has allowed lenders to recruit and train extra staff and work on their systems and processes, so we hope to see this improvement maintained.

"With more than 70 lenders on AFG's panel, the opportunity for brokers to find the right lending solution for their customers is assured," he said. "As we head into a rising interest rate environment, the competitive tension provided by the broker channel will ensure that homebuyers are always able to choose the lending solution that is the right fit for their individual circumstances."

-ends-

For media enquiries, please contact

Alison Clarke

Head of Corporate Communications P [phone] |P 0402 781 367

afgonline.com.au

FiscalFiscal QuarterLodge # Lodge VolumeAvg LoanInv %First Home Buyers %Refinance %Upgrader %Interest Only %Principal & 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%
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%
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%
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%
2022	3	35,691	$21,973,816,059	$615,668	26%	13%	24%	44%	17%	83%

AFG Mortgages lodged

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

Fiscal

Lodgement

Fiscal QuarterMajorNon-MajorMajorNon-Major

Investment	First Home	Refinance	Upgrader	Interest Only	Principal &
Volume	Buyers Volume	Volume	Volume	Volume	Interest Volume

MajorNon-MajorMajorNon-MajorMajorNon-MajorMajorNon-MajorMajorNon-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%

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%

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%

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%

2022

3

50.8%

49.2%

49.3%

50.7%

60.2%

39.8%

43.9%

56.1%

51.9%

48.1%

50.4%

49.6%

50.9%

49.1%