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According to the latest Australian Finance Group (AFG) Index, brokers lodged a new record of $31.6 billion in home loans during the three months to 31 December 2025, eclipsing the previous best second-quarter result by 25 per cent.
The outcome was also 3 per cent higher than the previous quarter, taking total lodgements to $62 billion.
AFG CEO David Bailey said the result reflected both sustained borrower confidence and the strength of the broker channel in a highly competitive lending environment.
“This quarter’s record lodgement volume highlights the critical trust AFG brokers continue to earn in supporting Australians seeking access to competitive finance solutions,” Bailey said.
“Their expertise and commitment are evident in the strong uplift across multiple borrower segments.”
The average loan size was also a record $725,348, reflecting record house prices.
First home buyers lift as refinancing slows
First home buyer participation increased during the quarter, rising from 11 per cent to 13 per cent – the highest level recorded since FY22.
Despite the improvement, Bailey said affordability pressures were still weighing on the segment as buyers await the impact of upcoming government initiatives.
“While we’ve seen a lift in first home buyer activity, broader affordability pressures remain,” he said.
“Our brokers are working closely with borrowers navigating purchasing power and competitive market conditions.”
Refinancing activity continued to unwind, falling to 16 per cent of lodgements – the lowest level on record.
“This shift reflects changing borrower behaviour,” Bailey said.
“The refinancing wave that defined prior periods has moderated, but brokers remain well positioned to support customers with future opportunities.”
Upgrader loan volume remained broadly on trend at 42 per cent.
Major banks maintain stronger broker reliance
The quarter saw a relatively even split between major and non-major lenders.
Lodgement numbers were split 59 per cent for majors and 41 per cent for non-majors – a figure that’s been broadly stable since 2023.
Similarly, investment volume was 56 per cent for majors and 44 per cent for non-majors.
Major lenders achieved their highest share of first home buyer business since the March quarter of FY17 (73 per cent compared to 28 per cent), while refinance volumes were more evenly split (57 per cent for majors to 43 per cent for non-majors).
“Despite commentary suggesting a shift back to what is now a much smaller branch network, the data tells a different story,” Bailey said.
“With broker market share sitting above 77 per cent, the channel remains vital for borrowers seeking choice, competition and support in a complex credit environment.”
WA leads state growth
Growth was recorded across nearly all states, with Western Australia delivering the strongest performance nationally.
On a quarterly basis, lodgements in Western Australia rose 12.46 per cent and were up 37.49 per cent year on year. Queensland also recorded strong momentum, with volumes up 4.54 per cent quarter on quarter and 27.87 per cent annually.
Victoria posted a 2.66 per cent quarterly increase and was up 24.45 per cent year on year, while South Australia rose 0.91 per cent quarter on quarter and 22.47 per cent annually. NSW was marginally lower quarter on quarter, down 0.53 per cent, but remained up 19.52 per cent compared with the same period last year.
“Western Australia continues to outperform the national market,” Bailey said. “Strong demand, constrained supply and population growth are contributing to high levels of activity.”
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