Announcement PDF 11  January    2016 Market  Announcements  Office ASX  Limited Exchange  Centre 20  Bridge  Street SYDNEY    NSW    2000 Dear  Sir AFG  MORTGAGE  INDEX  -­  DECEMBER  QUARTER  2015 Please  see  attached  statement  regarding  AFG’s  Mortgage  Index  for the  December  quarter  2015. Yours  faithfully, Lisa  Bevan Company  Secretary CONTACT  DETAILS Mark  Hewitt,  AFG  General  Manager  Sales  and  Operations Mob  0414  801  251  |  Tel  (08)  9420  7880 Alison  Clarke,  AFG  Head  of  Corporate  Communications                                          Mob  0402  781  367 NATIONAL HOMEOWNERS STEP UP AS INVESTORS EXIT 11 January 2016 Australian Finance Group (ASX: AFG) has today released its Mortgage Index for the final quarter of 2015. Investors have continued their retreat from the market with the latest figures showing investor lending had fallen from 40% of total loans processed early in the calendar year to 31% in the last quarter. Gains in both refinancing (36% to 38% of total loans) and upgrader (30% to 35%) categories led to a 7% lift in the total number of home loans processed by AFG for the December quarter compared to the same lending period in 2014. The figures were led by upward swings in Victoria of 17.69% and New South Wales at 12.23% with a surge in South Australia of 13.41%. These positive results offset a flat market in Queensland at 0.85%, and a decline in the Northern Territory -21.7%, in a comparatively smaller market. WA dipped, -9.55% reflecting a cooling housing market in that state. AFG General Manager Sales and Operations Mark Hewitt said the final quarter of 2015 painted a fitting picture of the year that was. “2015 was a year of adjustment for both borrowers and lenders. A shift in requirements for lenders set down by regulators saw many changes to lending policy and interest rates resulting in a level of confusion amongst borrowers. This has made the role of the broker even more important for Australians looking to buy homes. As foreshadowed by AFG’s Competition Index late last month, the number of people keen to fix their loans is on the rise. A long period of low interest rates has many people predicting an upward swing may be on its way in 2016. As the year drew to a close fixed rate lending lifted by nearly 3% to 14.2% of the product mix. This figure, as a percentage of AFG’s overall volume saw its first increase since the final quarter of 2013. More information can be found at www.afgonline.com.au under Media Hub – News and Data. ENDS CONTACT  DETAILS Mark  Hewitt,  AFG  General  Manager  Sales  and  Operations Alison  Clarke,  AFG  Head  of  Corporate  Communications Mob  0414  801  251  |  Tel  (08)  9420  7880 Mob  0402  781  367 AFG    M ORTGAGES   SOLD TABLE   1:   ALL   AUSTRALIA FISCAL YEAR FISCAL QUARTER TOTAL NUMBER TOTAL  AMOUNT AVERAGE  SIZE PROPERTY INVESTORS FIRST  TIME BUYERS REFINANCE % UPGRADER   % 2013 1 21,573 $8,416,615,856 $390,146 36% 15% 34% 28% 2013 2 21,409 $8,487,498,305 $396,445 36% 12% 34% 31% 2013 3 21,210 $8,322,560,369 $392,389 36% 12% 33% 31% 2013 4 24,446 $9,799,859,819 $400,878 37% 11% 33% 30% 2014 1 25,819 $10,541,804,825 $408,296 38% 10% 31% 32% 2014 2 25,896 $10,982,752,324 $424,110 39% 9% 32% 31% 2014 3 24,231 $10,301,908,234 $425,154 39% 9% 32% 31% 2014 4 26,968 $11,552,816,027 $428,390 39% 9% 34% 30% 2015 1 28,135 $12,205,519,083 $433,820 39% 8% 34% 31% 2015 2 28,668 $12,891,183,842 $449,672 39% 7% 36% 30% 2015 3 27,498 $12,263,796,897 $445,989 40% 8% 35% 30% 2015 4 31,238 $14,355,751,436 $459,561 40% 8% 37% 28% 2016 1 29,946 $14,093,133,807 $470,618 33% 9% 36% 34% 2016 2 28,953 $13,795,488,750 $476,479 31% 7% 38% 35% MAJOR   VS  N ON   MAJOR   LENDER   MARKET   SHARE TABLE   2:   BY   BUYER   T  YPE FISCAL YEAR FISCAL QUARTE R TOTAL   MORTGAGES REFINANCE FIRST  HOME BUYERS INVESTORS Major NonMajor Major NonMajor Major NonMajor Major NonMajor Major NonMajor 2013 1 77.1% 22.9% 72.9% 27.1% 74.5% 25.5% 79.4% 20.6% 79.5% 20.5% 2013 2 77.6% 22.4% 73.6% 26.4% 74.2% 25.8% 80.8% 19.2% 79.3% 20.7% 2013 3 78.2% 21.8% 73.4% 26.6% 77.1% 22.9% 80.0% 20.0% 80.4% 19.6% 2013 4 77.0% 23.0% 72.6% 27.4% 74.5% 25.5% 79.3% 20.7% 79.3% 20.7% 2014 1 74.1% 25.9% 67.3% 32.7% 72.8% 27.2% 76.5% 23.5% 76.9% 23.1% 2014 2 73.6% 26.4% 67.5% 32.5% 72.3% 27.7% 75.4% 24.6% 76.2% 23.8% 2014 3 74.3% 25.7% 68.3% 31.7% 71.1% 28.9% 77.1% 22.9% 76.7% 23.3% 2014 4 74.8% 25.2% 69.3% 30.7% 71.6% 28.4% 77.3% 22.7% 77.9% 22.1% 2015 1 73.7% 26.3% 66.5% 33.5% 69.7% 30.3% 76.8% 23.2% 77.4% 22.6% 2015 2 69.8% 30.2% 62.5% 37.5% 67.0% 33.0% 74.2% 25.8% 72.6% 27.4% 2015 3 73.3% 26.7% 67.1% 32.9% 72.3% 27.7% 76.5% 23.5% 75.5% 24.5% 2015 4 71.7% 28.3% 64.8% 35.2% 70.6% 29.4% 74.8% 25.2% 75.5% 24.5% 2016 1 73.8% 26.2% 68.9% 31.1% 73.9% 26.1% 72.8% 27.2% 78.1% 21.9% 2016 2 70.0% 30.0% 61.3% 38.7% 70.4% 29.6% 71.2% 28.8% 75.4% 24.6% CONTACT  DETAILS Mark  Hewitt,  AFG  General  Manager  Sales  and  Operations Mob  0414  801  251  |  Tel  (08)  9420  7880 Alison  Clarke,  AFG  Head  of  Corporate  Communications                                          Mob  0402  781  367 UPGRADER       TOTAL  LODGEMENT  VOLUME   TABLE   3:   BY   STATE/TERRITORY FISCAL YEAR FISCAL QUARTER AUSTRALIA NSW QLD SA VIC WA NT 2013 1 $8,416,615,856 $2,316,697,446 $1,701,187,487 $539,250,818 $1,863,981,139 $1,882,635,836 $112,863,129 2013 2 $8,487,498,305 $2,398,852,212 $1,624,079,026 $538,593,521 $1,900,825,059 $1,914,759,532 $110,388,955 2013 3 $8,322,560,369 $2,280,581,759 $1,596,742,132 $557,028,090 $1,773,185,026 $2,013,413,181 $101,610,181 2013 4 $9,799,859,819 $2,888,883,235 $1,721,114,525 $548,935,991 $2,182,800,665 $2,335,157,058 $122,968,345 2014 1 $10,541,804,825 $3,363,765,941 $1,839,152,241 $585,449,797 $2,298,574,557 $2,315,671,669 $139,190,621 2014 2 $10,982,752,324 $3,471,438,991 $1,928,914,555 $590,007,574 $2,476,010,606 $2,369,182,211 $147,198,387 2014 3 $10,301,908,234 $3,186,935,100 $1,768,250,912 $546,204,335 $2,423,999,521 $2,245,478,475 $131,039,892 2014 4 $11,552,816,027 $3,629,376,839 $1,967,383,688 $619,877,859 $2,703,849,299 $2,482,937,746 $149,390,595 2015 1 $12,205,519,083 $3,981,871,392 $2,060,602,810 $607,398,884 $2,916,256,148 $2,486,429,565 $152,960,284 2015 2 $12,891,183,842 $4,473,709,945 $2,160,878,402 $687,981,635 $3,058,631,996 $2,360,332,709 $149,649,155     2015 3 $12,263,796,897 $4,275,885,388 $1,994,261,092 $644,337,590 $2,930,388,349 $2,271,133,159 $147,791,319 2015 4 $14,355,751,436 $5,332,216,293 $2,269,517,331 $771,581,229 $3,388,069,830 $2,477,749,410 $116,617,343 2016 1 $14,093,133,807 $5,272,609,566 $2,144,601,078 $760,256,620 $3,528,145,174 $2,273,288,807 $114,232,562 2016 2 $13,795,488,750 $5,021,057,842 $2,142,368,177 $780,264,683 $3,599,706,308 $2,134,911,638 $117,180,103 AVERAGE   MORTGAGE   SIZE  I N  D OLL  A RS TABLE   4:   STATE   BY   STATE y FISCAL YEAR FISCAL QUARTER AUSTRALIA NSW QLD SA VIC WA NT 2013 1 $390,146 $454,076 $344,579 $315,721 $382,905 $403,048 $393,251 2013 2 $396,445 $471,380 $343,648 $314,049 $385,016 $411,688 $379,343 2013 3 $392,389 $459,424 $346,140 $331,960 $378,078 $403,086 $376,334 2013 4 $400,878 $482,929 $341,559 $314,037 $384,431 $410,180 $401,857 2014 1 $408,296 $496,864 $347,995 $318,525 $389,259 $408,336 $397,687 2014 2 $424,110 $515,816 $356,020 $332,961 $413,219 $422,993 $384,330 2014 3 $425,154 $513,111 $358,599 $333,255 $415,852 $425,683 $378,728 2014 4 $428,390 $522,739 $364,871 $330,073 $412,047 $425,963 $410,414 2015 1 $433,820 $523,655 $362,846 $332,639 $423,690 $432,498 $388,224 2015 2 $449,672 $561,107 $368,373 $350,475 $434,218 $433,327 $399,064 2015 3 $445,989 $550,165 $370,543 $338,413 $429,550 $433,340 $392,019 2015 4 $459,561 $558,230 $380,281 $352,481 $439,609 $446,763 $422,527 2016 1 $470,618 $582,287 $386,763 $361,855 $456,068 $435,162 $400,816 2016 2 $476,479 $583,708 $393,384 $374,407 $465,199 $444,218 $423,033 CONTACT  DETAILS Mark  Hewitt,  AFG  General  Manager  Sales  and  Operations Mob  0414  801  251  |  Tel  (08)  9420  7880 Alison  Clarke,  AFG  Head  of  Corporate  Communications                                          Mob  0402  781  367 LOAN   VALUE   RATIOS (loan   stated   as   %   of   property   value) TABLE   5 :   ALL   AUSTRALIA FISCAL YEAR FISCAL QUARTER 2013 AUSTRALIA NSW QLD SA VIC WA NT 1 69.6% 69.8% 70.2% 69.0% 70.5% 70.1% 68.3% 2013 2 70.2% 70.5% 70.5% 70.3% 71.1% 71.9% 66.9% 2013 3 70.3% 70.0% 70.2% 70.4% 71.8% 71.2% 68.0% 2013 4 70.0% 69.7% 69.8% 70.3% 72.0% 70.3% 68.0% 2014 1 69.8% 69.6% 70.4% 69.3% 71.9% 71.6% 66.3% 2014 2 70.4% 69.3% 71.3% 71.3% 71.9% 71.6% 67.2% 2014 3 69.9% 69.0% 70.0% 70.8% 72.7% 70.6% 66.2% 2014 4 69.5% 68.6% 69.4% 71.3% 72.8% 70.1% 65.1% 2015 1 70.1% 68.8% 69.0% 70.9% 72.5% 71.3% 68.3% 2015 2 70.5% 68.8% 69.8% 71.7% 73.1% 70.5% 69.1% 2015 3 69.7% 68.4% 69.9% 70.7% 72.8% 70.7% 65.9% 2015 4 69.7% 66.9% 69.6% 71.7% 72.6% 70.9% 66.3% 2016 1 69.7% 67.3% 69.2% 69.7% 72.8% 71.5% 67.8% 2016 2 69.3% 65.5% 69.7% 71.4% 71.4% 71.1% 67.0% LOAN   T  Y PE TABLE   6:   ALL   AUSTRALIA FISCAL   YEAR FISCAL   QUARTER BASIC   VARIABLE EQUITY FIXED INTRO STANDARD VARIABLE 2013 1 7.6% 6.9% 14.5% 2.5% 68.5% 2013 2 7.6% 6.0% 15.5% 1.9% 69.0% 2013 3 6.6% 5.2% 18.2% 3.1% 66.8% 2013 4 6.1% 5.7% 21.7% 3.8% 62.7% 2014 1 6.5% 5.4% 20.3% 4.6% 63.2% 2014 2 5.4% 5.1% 20.1% 4.4% 65.0% 2014 3 5.7% 5.1% 17.7% 5.8% 65.8% 2014 4 6.1% 5.3% 17.4% 5.2% 66.0% 2015 1 6.6% 4.6% 17.5% 5.6% 65.8% 2015 2 5.9% 4.6% 16.7% 4.5% 68.2% 2015 3 6.4% 4.0% 14.3% 7.0% 68.3% 2015 4 6.0% 3.5% 14.5% 6.3% 69.8% 2016 1 8.7% 3.3% 11.4% 5.4% 71.3% 2016 2 8.5% 3.3% 14.2% 4.2% 69.8% CONTACT  DETAILS Mark  Hewitt,  AFG  General  Manager  Sales  and  Operations Mob  0414  801  251  |  Tel  (08)  9420  7880 Alison  Clarke,  AFG  Head  of  Corporate  Communications                                          Mob  0402  781  367 DATA  NOTE   Victorian  data  includes  Tasmania  and  NSW  data  includes  ACT. DEFINITIONS 1. Standard  Variable:  includes  the   full  range   of  features   available. 2. Basic   Variable:  without   some   features,  lower   fees   and  rates. 3. Intro:  also   known   as  ‘honeymoon’  where   the   borrower  is  offered   a  very   cheap   initial   rate   (fixed  or  variable)  before the   loan   reverts   to  a  Standard  Variable. 4. Fixed:   interest   rate   is  fixed   for  a  nominated  period   before   it  reverts   to  a  Standard  Variable. 5. Equity:  also  known  as  ‘line  of  credit’   allows   the   borrower  to  draw  out  money  up  to  a  specified  limit.   G enerally more   expensive  than   Standard  Variable   loans. AFG  is  Australia’s  largest  mortgage  broking  group  and  one  of  the  country’s  largest  financial  services  companies.    Established  in 1994,  the  company  now  provides  more  than  16%  of  brokers  nationwide  with  access  to  Australia’s  leading  lending  institutions, and  has  a  mortgage  book  in  excess  of  $100  billion. CONTACT  DETAILS Mark  Hewitt,  AFG  General  Manager  Sales  and  Operations Alison  Clarke,  AFG  Head  of  Corporate  Communications Mob  0414  801  251  |  Tel  (08)  9420  7880 Mob  0402  781  367 www.afgonline.com.au CONTACT  DETAILS Mark  Hewitt,  AFG  General  Manager  Sales  and  Operations Mob  0414  801  251  |  Tel  (08)  9420  7880 Alison  Clarke,  AFG  Head  of  Corporate  Communications                                          Mob  0402  781  367