Mortgage sales turn corner at AFG
The spring selling season helped lift new business at Australian Finance Group in September. AFG said the value of new mortgages increased ten per cent for the month to $2.1 billion.The AFG August sales value was the lowest since the seasonally weak December 2006.Total September mortgages sold increased eight per cent for the month to 6231, pushing the average loan size higher to $337,000.Borrowers also appear to have larger deposits, with the average loan to value ratio falling to 65.9 per cent, a drop of almost one percentage point.The composition of mortgage types has remained relatively stable in recent months, with the standard variable accounting for half of all September mortgages, with the basic variable 21 per cent, equity 15 per cent and introductory nine per cent.Less than five per cent of new mortgages were fixed.