Consumers may need more help to compare home loans

Consumers may need help when it comes to comparing home loans, if one news report is anything to go by.

A Sydney Morning Herald article noted consumer watchdog Choice has pointed out that two of the big banks control nearly 50 per cent of the country’s mortgage market, which could be hitting people’s finances.

Westpac and Commonwealth banks were found to dominate the sector with a 48.9 per cent share in September, up from 45 per cent at the beginning of 2009, according to CoreData Brand Management figures.

This could mean higher prices for those looking for low interest home loans, said a representative of Choice.

According to a survey conducted by the organisation, people feel more satisfied with non-bank financial institutions.

Spokesperson for the group Christopher Zinn commented: "The lack of choice is hitting consumers in the wallet, which is why we advocate voting with your feet."

In other home loans news, some 30 per cent of first-time buyers are being turned away by banks because of a lack of savings, according to Dean Rushton, Loan Market Group chief operating officer.

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