Home loans: Big Aussie banks muddy the waters, ACCC mortgage report finds

THE consumer watchdog says there are “signs of less-than-vigorous” competition in the mortgage market, and the big banks make it difficult for customers to compare rates.

THE consumer watchdog says there are “signs of less-than-vigorous price competition” in mortgages between Australia’s big four banks, who make it difficult for customers to compare rates.

Australian Competition and Consumer Commission chairman Rod Sims said this morning that the watchdog’s interim report into mortgage pricing had also found banks favoured new borrowers over existing customers.

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Many consumers could easily save money by switching lender, Mr Sims said.

The big banks make it difficult for consumers to compare home loans, ACCC chairman Rod Sims says.

“The discounting by the big banks lacks transparency and it’s almost impossible for customers to obtain accurate interest rate comparisons without investing a great deal of time and effort,” he said.

The ACCC also found that interest rates on “no frills” home loans were often higher than banks’ standard rates.

“We think many customers who opted for ‘basic’ or ‘no frills’ loans thinking they are saving money would be surprised to learn they might actually be paying more,” Mr Sims said.

More to come ...