Proving the residential property market is far from flat, AFG has recorded its highest February sales on record, processing $2.8 billion of loans.
This is significantly higher than the $2 billion recorded in February 2011 and $2.2 billion in February 2010 and may be on the back of a resurgence of first home buyers.
AFG’s general manager sales and operations Mark Hewitt said the dynamics of the home loan market are changing in a number of ways.
“The very good news is that the past six months has seen a steady stream of First Home Buyers return, which is vital to the future of property markets.
“This is an environment in which brokers thrive, because borrowers know they really need to shop around for the best deal, and increasingly rely on us to do so,” he said.
Interestingly, 23.2 per cent of all sales were fixed rates, surpassing the previous high of 20.4 per cent for fixed rate loans recorded in October last year.
“Concern about the future of rates is also the reason why record numbers of borrowers are choosing to fix rates.”
AFG Mortgage Index also shows that, for the first time ever, the average new home loan in Australia reached $400,000 – up from $385,000 in January and $382,000 in February 2011.
Across the nation, NSW had the highest average new home loan - $471,000, followed by Western Australia on $421,000 and Victoria on $409,000.