National loan-to-value ratios dipped slightly, with the national average LVR sitting at 64%. Variable-rate lending made up 86.5% of all lodgements.
The major banks – Commonwealth Bank, NAB, Westpac, ANZ and their associated brands – accounted for 60% of total lodgements, with non-majors at 40%. Non-majors maintained a 43% share of investment, and 39% of principal and interest volumes. In refinancing, non-majors captured 44% of flows.
“We recognise potential ongoing inflation risks for borrowers, but we are still seeing strong levels of lodgement activity across the network volumes,” said AFG chief executive David Bailey (pictured). “This demand is being driven by continued wage growth and the resilience of household balance sheets.”
Notably, AFG’s white-label offering had the second-highest performance on record, contributing $1.5 billion in lodgements, representing a 79% year-on-year increase.
To fund this surging demand, AFG issued its largest-ever residential mortgage-based securitisation (RMBS) transaction in February. There are now $6.7 billion worth of AFG Home Loans mortgages on its books.