(Source: AFG Mortgage Index)

Mortgages processed last month by AFG, Australia’s largest mortgage broker, surged 58% higher than in January, and 16% higher than in February 2014, according to the latest AFG Mortgage Index.

The $4.3 billion of mortgages processed in February included a record $280 million processed on the last Wednesday, 25th February, the largest single day’s volume AFG has recorded in its 21 year history.

Mortgage volumes varied significantly from state to state, with South Australia showing the greatest increase of 31% on February 2014, with NSW up by 25%, VIC by 21%, QLD by 15% and WA going backwards, processing 4% less in volume than in February 2014.

Mark Hewitt, General Manager of Sales and Operations (pictured) said the figures were encouraging.

‘February is the real start to the mortgage year and overall we’re off to a flying start this year. No doubt the February rate cut has made borrowers more confident, but it’s important to recognize the significant variations from one state to another,” Mr Hewitt said.

“We’re also keeping a close eye on the proportion of investors, but this hasn’t changed on the levels we’ve been seeing for the past twelve months.”

Loans to investors comprised 39.6% of all home loans processed last month, a similar figure to those reported each month for the past year.

Fixed rate mortgages declined as a percentage of all home loans to 13.6%, its lowest since August 2011 when only 9.4% of borrowers chose fixed rate loans. The rise of Introductory loans continued to a fresh high of 7.9% last month, indicating the proportion of borrowers.