Announcement PDF ! ! ! ! ! ! 14!October!2015! ! ! ! ! Market!Announcements!Office! ASX!Limited! Exchange!Centre! 20!Bridge!Street! SYDNEY!!NSW!!2000! ! ! ! ! Dear!Sir! ! AFG$MORTGAGE$INDEX$.$SEPTEMBER$QUARTER$2015$ ! ! Please!see!attached!statement!regarding!AFG’s!Mortgage!Index!for!! the!September!quarter!2015.! ! ! Yours!faithfully,! Lisa!Bevan! Company!Secretary! ! ! ! ! ! ! ! ! ! ! ! CONTACT!DETAILS! Brett!McKeon!–!AFG!Managing!Director!(08)!94207888! Alison!Clarke!–!AFG!Corporate!Communications!0402781367! ! ! ! ! ! ! NATIONAL!! ! UPGRADERS!DRIVE!MARKET!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! ! ! 14!October!2015! Australian! Finance! Group! (ASX:! AFG)! Mortgage! Index! has! today! reported! the! total! value! of! home! loans! processed! by! AFG! brokers!for!the!September!2015!quarter!was!$14.161B,!an!increase!of!nearly!16%!on!the!same!period!last!year.! ! Brett! McKeon,! AFG! Managing! Director! outlined! the! result:! “A! key! driver! of! the! strong! result! was! activity! from! upgraders! –! owner!occupiers!changing!properties.!In!the!June!quarter!28%!of!the!loans!we!processed!were!for!homeowners!making!a!move! but!this!lifted!to!34%!for!the!September!quarter.!This!activity!is!consistent!with!the!traditional!spring!buying!season!which!is! now!well!underway.! ! “With!continued!low!interest!rates!and!lender!policy!changes!being!made!around!investment!and!interest!only!lending,!many! borrowers!are!aware!the!market!is!changing!and!are!seeking!the!help!of!an!informed,!professional!broker.! ! A!shift!in!requirements!for!lenders!set!down!by!APRA!however!is!having!an!impact!on!total!flows!with!investment!lending!for! the!quarter!down!from!a!3!year!average!of!38%!of!total!loans!processed,!to!33%.! ! “We! have! noticed! in! the! latter! part! of! the! quarter! that! the! percentage! of! our! business! comprised! of! investment! lending! stabilized!at!32!–!33%!so!it!appears!that!the!last!round!of!changes!have!now!flowed!through!the!system”!Mr!McKeon!said.! ! With!interest!rates!low!and!some!commentators!predicting!there!may!be!further!falls,!fixed!home!loans!were!at!their!lowest! level!for!more!than!three!years!at!11.3%!of!total!loans!processed!for!the!quarter.! ! The!pricing!and!policy!changes!made!by!the!majors!saw!the!nondmajors!regain!2!%!in!market!share!in!the!investor!space!over! the!quarter,!a!further!indication!that!borrowers!are!seeking!a!broker’s!help.!! ! More!information!can!be!found!at!www.afgonline.com.au!under!Media!Hub!–!News!and!Data.! ! AFG!Mortgage!Index!–!Going!Forward! Historically!AFG!has!released!the!AFG!Mortgage!Index!on!a!monthly!basis.!Following!AFG’s!successful!listing!on!the!ASX,!AFG! has! determined! that! the! AFG! Mortgage! Index! is! now! published! on! a! quarterly! basis.! This! change! follows! a! review! of! AFG’s! market!reporting!and!disclosure!activities!as!a!newly!ASX!listed!entity.! ENDS CONTACT!DETAILS! Brett!McKeon!–!AFG!Managing!Director!(08)!94207888! Alison!Clarke!–!AFG!Corporate!Communications!0402781367! ! ! AFG!!MORTGAGES! SOLD! TABLE! 1:! ALL! AUSTRALIA! ! ! FISCAL! YEAR! ! FISCAL! QUARTER! ! TOTAL! NUMBER! ! TOTAL! AMOUNT! ! AVERAGE!SIZE! ! PROPERTY! INVESTORS! ! FIRST!TIME! BUYERS! ! REFINANCE! %! ! UPGRADER!! %! 2013 1 21,574 $8,417 b $390 k 36% 15% 34% 28% 2013 2 21,409 $8,487 b $396 k 35% 12% 33% 31% 2013 3 21,210 $8,322 b $392 k 35% 12% 33% 31% 2013 4 24,445 $9,799 b $400 k 36% 11% 33% 30% 2014 1 25,818 $10,541 b $408 k 37% 10% 31% 32% 2014 2 25,896 $10,982 b $424 k 39% 9% 32% 31% 2014 3 24,231 $10,301 b $425 k 39% 9% 32% 31% 2014 4 26,968 $11,552 b $428 k 39% 9% 34% 30% 2015 1 28,132 $12,207 b $433 k 39% 8% 34% 31% 2015 2 28,669 $12,891 b $449 k 39% 7% 36% 30% 2015 3 27,497 $12,264 b $446 k 40% 8% 35% 30% 2015 4 31,251 $14,361 b $459 k 40% 7% 37% 28% 2016 1 30,002 $14,154 b $471 k 33% 9% 35% 34% ! MAJOR! VS!NON! MAJOR! LENDER! MARKET! SHARE! TABLE! 2:! BY! BUYER! T!Y PE! ! ! FISCAL! YEAR! ! FISCAL! QUARTE RR! ! TOTAL!! MORTGAGES! ! FIRST!HOME! BUYERS! REFINANCE! ! INVESTORS! ! UPGRADER! Major NonMajor Major NonMajor Major NonMajor Major NonMajor Major NonMajor 2013 1 77% 23% 73% 79% 74% 25% 79% 20% 79% 21% 2013 2 78% 22% 73% 81% 74% 26% 81% 19% 79% 21% 2013 3 78% 22% 73% 80% 77% 23% 80% 20% 80% 20% 2013 4 77% 23% 73% 79% 74% 25% 79% 21% 79% 21% 2014 1 74% 26% 67% 76% 73% 27% 76% 23% 77% 23% 2014 2 74% 26% 67% 75% 72% 28% 75% 24% 76% 24% 2014 3 74% 26% 68% 77% 71% 29% 77% 23% 77% 23% 2014 4 75% 25% 69% 77% 72% 28% 77% 23% 78% 22% 2015 1 74% 26% 66% 77% 70% 30% 77% 23% 77% 23% 2015 2 70% 30% 62% 74% 67% 33% 74% 26% 73% 27% 2015 3 73% 27% 67% 76% 72% 28% 76% 23% 76% 24% 2015 4 72% 28% 65% 75% 71% 29% 75% 25% 75% 25% 2016 1 74% 26% 69% 72% 74% 26% 73% 27% 78% 22% ! CONTACT!DETAILS! Brett!McKeon!–!AFG!Managing!Director!(08)!94207888! Alison!Clarke!–!AFG!Corporate!Communications!0402781367! ! ! ! ! !! ! !! ! AVERAGE! MORTGAGE! SIZE!IN!DOLL!A RS! TABLE! 3:! STATE! BY! STATE! y! ! ! ! FISCAL! YEAR! ! FISCAL! QUARTER! AUSTRALIA! NSW! QLD! SA! VIC! WA! NT! 2013 1 $390,147 $454,076 $344,592 $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 $392,369 $459,339 $346,140 $331,960 $378,078 $403,086 $376,334 2013 4 $400,889 $482,929 $341,559 $314,037 $384,476 $410,180 $401,857 2014 1 $408,302 $496,864 $348,021 $318,525 $389,256 $408,336 $397,687 2014 2 $424,110 $515,816 $356,020 $332,961 $413,219 $422,993 $384,330 2014 3 $425,157 $513,111 $358,613 $333,255 $415,852 $425,683 $378,728 2014 4 $428,396 $522,782 $364,871 $330,073 $412,025 $425,963 $410,414 2015 1 $433,952 $523,711 $363,480 $332,639 $423,690 $432,491 $388,224 2015 2 $449,671 $561,195 $368,166 $350,475 $434,246 $433,327 $399,064 2015 3 $446,022 $550,150 $370,708 $338,617 $429,428 $433,424 $392,293 2015 4 $459,564 $558,335 $380,089 $352,510 $439,777 $446,655 $422,527 2016 1 $471,784 $583,912 $387,240 $362,801 $457,226 $435,841 $409,222 ! LOAN! VALUE! RATIOS (loan! stated! as! %! of! property! value)! TABLE! 4 :! ALL! AUSTRALIA! ! ! FISCAL! YEAR! ! FISCAL! QUARTER! 2013 2013 AUSTRALIA! NSW! QLD! SA! VIC! WA! NT! 1 69% 69% 69% 69% 70% 71% 71% 2 70% 68% 70% 71% 71% 73% 70% 2013 3 70% 68% 70% 68% 71% 71% 71% 2013 4 69% 67% 69% 70% 71% 71% 68% 2014 1 69% 67% 70% 68% 72% 73% 63% 2014 2 69% 66% 70% 71% 71% 72% 66% 2014 3 69% 66% 70% 70% 73% 71% 64% 2014 4 68% 66% 68% 70% 72% 71% 62% 2015 1 69% 66% 68% 69% 72% 71% 68% 2015 2 69% 66% 69% 70% 73% 70% 70% 2015 3 69% 66% 69% 69% 72% 71% 65% 2015 4 68% 64% 68% 70% 72% 71% 64% 2016 1 68% 64% 68% 69% 72% 72% 65% ! ! CONTACT!DETAILS! Brett!McKeon!–!AFG!Managing!Director!(08)!94207888! Alison!Clarke!–!AFG!Corporate!Communications!0402781367! ! www.afgonline.com.au! ! ! ! ! LOAN! T!Y PE! TABLE! 5:! ALL! AUSTRALIA! ! ! FISCAL!! YEAR! ! FISCAL!! QUARTER! ! BASIC!! VARIABLE! EQUITY! FIXED! INTRO! ! STANDARD! VARIABLE! 2013 1 8% 7% 14% 2% 68% 2013 2 8% 6% 15% 3% 69% 2013 3 7% 5% 18% 3% 67% 2013 4 6% 6% 22% 4% 62% 2014 1 6% 5% 20% 5% 63% 2014 2 5% 5% 20% 4% 65% 2014 3 6% 5% 18% 6% 65% 2014 4 6% 5% 17% 5% 66% 2015 1 7% 5% 17% 6% 66% 2015 2 6% 5% 17% 5% 68% 2015 3 6% 4% 14% 7% 68% 2015 4 6% 4% 14% 6% 70% 2016 1 9% 3% 11% 5% 71% ! ! 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.!Generally! 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!20%!of!brokers!nationwide!with!access!to!Australia’s!leading!lending!institutions,! and!has!a!mortgage!book!in!excess!of!$100!billion.!! ! CONTACT!DETAILS! Brett!McKeon!–!AFG!Managing!Director!(08)!94207888! Alison!Clarke!–!AFG!Corporate!Communications!0402781367! ! www.afgonline.com.au! !