NATIONAL

COLLAPSE IN FIRST HOME BUYING IN NSW AND QLD –
LATEST MORTGAGE FIGURES
3 December 2012
Demand for home loans by first home buyers has collapsed in New South Wales
and Queensland, according to AFG, Australia’s largest mortgage broker. Last
month, AFG arranged just 96 home loans worth $31 million for First Home Buyers
in Queensland, compared with 265 mortgages worth $79 million the month before.
This follows a similar trend in New South Wales where in both October and
November the company arranged fewer than half the 219 home loans worth $83
million in September. State Governments in both NSW and QLD have withdrawn
$7,000 first home buyers grants in the past two months.
The proportion of the company’s home loans arranged for first home buyers has
slumped in Queensland from levels around 15% in the months leading up to the
end of the first home buyers grant, to just 5.5%. In New South Wales, first home
buyers comprised 13% of new home loans up till September, dropping to 5.7% in
October and 5.4% in November.
Mark Hewitt, General Manager of Sales and Operations says: ‘This trend is both
significant and very concerning for the market going forward. First home buyers
are the lifeblood of the property market – when activity stagnates at the entry
level, it affects everyone up the property chain. By contrast, both New South
Wales and Queensland are enjoying strong support among property investors right
now. We could be seeing the transition to a generation of renters unless more is
done to help people onto the property ladder.’
New South Wales leads Australia with 41.1% of all loans in the state arranged for
property investors. In Queensland this figure is 33.4%. By contrast, WA leads the
country in the first home buyers market with 23.6% of all new home loans
arranged for them.
Fixed rate mortgages rose as a proportion to 21.6% of all home loans arranged.
This is higher than in previous months but still well below the peak of 25.4%
reached in March 2012.

Figures for each state are available at: www.afgonline.com.au: Corporate – News.

ENDS
CONTACT DETAILS
Mark Hewitt, AFG General Manager Sales & Operations

Mob 0414 801 251 | Tel (08) 9420 7888

David Michie, Mosaic Reputation Management

Tel

(08) 9381 4494 | Mob 0411 453 404

www.afgonline.com.au

AFG MORTGAGES SOLD
TABLE 1: ALL AUSTRALIA
MONTH

TOTAL
NUMBER

TOTAL
AMOUNT

AVERAGE
SIZE

PROPERTY
INVESTORS

FIRST TIME
BUYERS

%
REFINANCE

Sept 11
Oct 11
Nov 11
Dec 11
Jan 12
Feb 12
Mar 12
Apr 12
May 12
June 12
July 12
Aug 12
Sept 12
Oct 12
Nov 12

6,687
6,349
7,492
5,576
4,736
7,000
7,254
5,937
7,635
6,690
7,027
7,730
6,882
7,719
7,831

$2,633 m
$2,509 m
$2,970 m
$2,188 m
$1,824 m
$2,806 m
$2,930 m
$2,275 m
$3,005 m
$2,635 m
$2,732 m
$3,071 m
$2,708 m
$3,103 m
$3,094 m

$393k
$395k
$396k
$392k
$385k
$400k
$404k
$383k
$393k
$393k
$388k
$397k
$393k
$402k
$395k

37.7%
35.6%
38.4%
37.8%
35.9%
36.5%
35.5%
35.2%
37.1%
37.0%
35.2%
36.4%
35.5%
35.8%
33.9%

15.7%
16.4%
15.8%
15.7%
15.8%
14.9%
15.6%
15.8%
15.8%
15.6%
17.3%
15.9%
13.2%
15.4%
12.9%

37.9%
37.9%
37.8%
36.2%
37.3%
36.6%
37.6%
36.2%
35.8%
39.1%
36.9%
35.4%
35.2%
34.8%
34.9%

MAJOR VS NON MAJOR LENDER MARKET SHARE
TABLE 2: BY BUYER T YPE

MONTH

MAJOR

NONMAJOR

MAJOR

NONMAJOR

FIRST HOME
BUYERS
NONMAJOR
MAJOR

2011 10
2011 11
2011 12
2012 01
2012 02
2012 03
2012 04
2012 05
2012 06
2012 07
2012 08
2012 09
2012 10
2012 11

78.9%
80.4%
75.7%
79.0%
76.1%
77.1%
78.4%
77.4%
77.2%
77.6%
77.8%
76.0%
77.1%
78.4%

21.1%
19.6%
24.3%
21.0%
23.9%
22.9%
21.6%
22.6%
22.8%
22.4%
22.2%
24.0%
22.9%
21.6%

78.8%
78.9%
71.2%
78.9%
78.7%
78.2%
76.0%
77.6%
77.1%
73.3%
75.9%
75.2%
73.7%
74.0%

21.2%
21.0%
28.8%
21.1%
21.3%
21.8%
24.0%
22.4%
22.9%
26.7%
24.1%
24.8%
26.3%
26.0%

70.8%
71.3%
71.7%
72.6%
70.9%
70.1%
71.4%
67.0%
73.5%
75.1%
74.6%
74.3%
71.7%
74.9%

TOTAL MORTGAGES

REFINANCE

www.afgonline.com.au

29.2%
28.7%
28.3%
27.4%
29.1%
29.9%
28.6%
33.0%
26.5%
24.9%
25.4%
25.7%
28.3%
25.1%

INVESTORS
MAJOR

NONMAJOR

82.7%
82.6%
78.0%
83.1%
82.9%
82.7%
82.8%
82.6%
82.4%
82.0%
81.8%
81.3%
80.9%
80.8%

17.3%
17.4%
21.9%
16.9%
17.7%
17.3%
17.2%
17.4%
17.6%
18.0%
18.2%
18.7%
19.1%
19.2%

AVERAGE MORTGAGE SIZE IN DOLL ARS
TABLE 3: STATE BY STATE
MONTH
2011 09
2011 10
2011 11
2011 12
2012 01
2012 02
2012 03
2012 04
2012 05
2012 06
2012 07
2012 08
2012 09
2012 10
2012 11

AUSTRALIA
393,822
395,226
396,520
392,559
385,337
400,864
404,003
383,252
393,608
393,913
388,919
397,303
393,625
402,120
395,149

NSW
461,132
447,144
449,942
450,620
437,476
471,690
476,278
438,067
471.848
470,804
441,236
476,061
454,687
478,148
473,172

QLD
358,846
358,142
352,252
361,439
351,966
339,361
352,485
340,197
346,883
348,646
343,672
348,579
347,953
347,026
348,444

SA
325,771
329,566
318,437
325,937
312,596
317,469
333,712
314,486
313,056
303,657
314,866
325,877
304,005
320,793
315,773

VIC
383,114
396,238
400,929
376,570
389,634
409,651
397,739
384,380
379,130
381,493
399,317
385,407
380,811
396,997
379,949

WA
397,917
406,019
418,360
409,917
406,222
421,297
418,589
403,784
412,752
409,099
396,215
402,290
419,076
412,952
403,944

NT
338,159
369,765
376,376
395,489
374,604
382,027
346,622
359,067
345,645
390,389
415,627
373,628
412,581
375,339
365,993

WA
67.8%
67.1%
68.7%
69.9%
70.2%
69.8%
69.5%
69.3%
70.7%
70.1%
68.2%
70.7%
73.6%
71.6%

NT
60.5%
64.3%
66.1%
70.9%
66.7%
65.6%
69.8%
68.9%
64.6%
64.6%
66.8%
68.6%
67.1%
64.4%

LOAN VALUE RATIOS (loan stated as % of property value)
TABLE 4: STATE BY STATE

2011 10
2011 11
2011 12
2012 01
2012 02
2012 03
2012 04
2012 05
2012 06
2012 07
2012 08
2012 09
2012 10
2012 11

AUSTRALIA
66.7%
66.5%
67.5%
68.9%
67.7%
67.6%
67.8%
67.5%
66.9%
67.7%
68.6%
69.0%
70.5%
69.0%

NSW
70.0%
69.7%
69.6%
67.9%
66.7%
67.5%
65.4%
66.1%
67.2%
67.3%
69.1%
68.0%
69.3%
67.5%

QLD
67.9%
66.9%
68.4%
66.3%
68.1%
67.4%
66.2%
65.8%
65.3%
68.5%
67.8%
68.6%
70.5%
68.3%

SA
67.8%
64.5%
67.7%
67.6%
66.4%
66.2%
67.5%
66.1%
65.3%
65.7%
69.7%
69.2%
70.1%
72.1%

www.afgonline.com.au

VIC
65.9%
66.6%
64.7%
70.8%
68.0%
69.1%
68.1%
68.6%
68.3%
69.7%
70.1%
69.3%
72.4%
69.8%

LOAN T YPE
TABLE 5: ALL AUSTRALIA
MONTH
Oct 11
Nov 11
Dec 11
Jan 12
Feb 12
Mar 12
Apr 12
May 12
June 12
July 12
Aug 12
Sept 12
Oct 12
Nov 12

BASIC
8.8%
8.9%
9.4%
10.7%
9.7%
8.8%
10.6%
10.3%
10.5%
10.9%
9.2%
9.0%
9.5%
8.7%

EQUITY
8.1%
7.2%
7.3%
7.5%
6.6%
6.7%
7.4%
8.0%
7.6%
7.5%
6.8%
6.6%
5.9%
5.7%

FIXED
20.4%
17.2%
19.2%
18.6%
23.2%
25.4%
21.0%
19.7%
16.5%
16.8%
19.9%
21.5%
20.8%
21.6%

INTRO
3.9%
3.5%
3.9%
3.8%
3.5%
3.6%
3.4%
3.1%
2.9%
5.4%
5.2%
5.7%
5.5%
4.8%

STANDARD
58.6%
63.1%
60.2%
59.4%
57.0%
55.4%
57.5%
58.9%
62.5%
59.3%
58.8%
57.2%
58.2%
59.2%

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.

NOTE TO EDITORS
AFG is Australia’s largest mortgage broker. 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 $65 billion.

www.afgonline.com.au

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