1 per cent interest: Greens bold election plan to tank Big Banks

The Greens have revealed a bold plan to tackle Australia’s big four banks ahead of the next federal election.

Big Banks are raking in $760 a month and $9,130 in interest in the first year on the average home loan in Australia according to new analysis that is fuelling a key Greens election vow.

The research from the Australia Institute showed current interest rates would mean the major banks would make $200,880 over the lifetime of a 30-year-loan on the average home loan.

The federal Greens are using the stark research to drive their signature housing policy ahead of the next federal election — vowing to force the big backs to make no more than 1 per cent in profits on first homebuyer loans.

The Greens are vowing to force the big backs to make no more than 1 per cent in profits on first homebuyer loans. Picture: NCA Newswire

The policy would force banks to limit the interest rate they offer to first home buyers at just 1 per cent more than the cash rate.

Greens treasury spokesman Senator Nick McKim said the major banks were “crushing mortgage holders”.

“They are currently making billions of dollars in profits ripping off struggling mortgage holders by overcharging them on theirmortgage,” he said.

Greens Senator Nick McKim says the major banks are “crushing mortgage holders”.

”For the average home loan, $761 per month is pure profit for the major banks.

“To stop the price gouging and profiteering, the Australian Greens can today announce our new policy HomeKeeper: a discount mortgage for homeowners.”

Mr McKim said he was confident the next election — due no later than May — would bring a minority parliament.

“After the next election we’ll almost certainly have a minority parliament and this is part of the Greens plan to work with Labor to help renters and people with mortgages,“ he said.