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Last month the company processed a total of $4.3 billion in broker-originated mortgages across the country, with 40.3 per cent processed on behalf of investors.
The 40.3 per cent figure is an increase on the previous all-time high of 40.0 per cent recorded in May this year, and the $4.3 billion in volume is 3.5 per cent above the previous record of $4.2 billion, also recorded this May.
Investment mortgages comprised 49.7 per cent of new home loans processed last month in NSW, 37.2 per cent in Victoria, 36.4 per cent in South Australia, 34.9 per cent in Queensland and 32.2 per cent in WA.
While the investor segment continues to gain strength, first home buyer activity has waned with a record low of just 8.4 per cent of new home loans processed.
This figure was down from a previous low of 9.5 per cent last month and 11.3 per cent in September last year.
Separate analysis conducted by AFG shows that the percentage of first home buyer loans with an LVR above 90 per cent has increased from 57 per cent of all FHB loans in 2012 to 64 per cent last month.
During the same period, the proportion of investment loans with LVRs under 80 per cent has declined from 46 per cent to 40 per cent.
AFG’s general manager of sales and operation Mark Hewitt said strong overseas investor activity is likely to be a contributing factor to these changes.
“With countries like Canada making it more difficult for overseas residents to invest in property, very strong demand from investors can be expected this spring,” Mr Hewitt said.
“The concern however is for first home buyers,” he said.
“Historically, this segment has comprised around 15 per cent of all the loans we process, but in recent months this figure has fallen into single digits.”
The number of borrowers choosing to lock in fixed rates rose again in September to 27.9 per cent – the highest figure recorded since November 2013 (25.3 per cent).