Property investors dominate NSW August mortgage activity, with first-home buyer strongest in WA: AFG

The AFG mortgage broking group processed more home loans in August than any month since March 2009.

The company processed $3,071 million worth of mortgages in August – an increase of 10% on July figures and 7.4% on August 2011.

AFG has 10% of the total national mortgage market.

The lending data showed that the proportion of new borrowers choosing fixed interest rates rose from 16.8% in July to 19.9%, as one in five new mortgage holders chooses to lock in rates.

August is  traditionally a strong month for mortgages, according to Mark Hewitt, AFG general manager.

"What’s different about this year is that borrowers have remained relatively active during the winter months – July was also a very strong month for us.

"There is a sense that conditions for property buyers are quite positive in terms of pricing and affordability.

"And a lot of existing borrowers are also taking advantage of heavy competition amongst banks on fixed rates," he notes.

The level of mortgages processed for investors was highest in New South Wales, at 44.7% of all new home loans  in August.

August's next strongest state for investors was Queensland, on 36.6%, then Victoria on 35.2%, South Australia on 29.5% and WA on 29.1%.

WA was the strongest state for first-home buyers, where 20.7% of new home loans were arranged for them, compared with 17.7% in Victoria, 13.4% in South Australia, 13.1% in New South Wales and 13% in Queensland.

The relative market share of major vs non major lenders held steady, with majors accounting for 77.8% of all new home loans and non majors 22.2%.