Government targets better deals on home loans and savings for Aussies

The Albanese government has announced new measures to help Australians get better rates on their home loans and savings accounts.

The new 'rules' focus on offering more choice, lower prices and better services.

Specifically, the government will help Aussies find and switch to better mortgage deals and get better interest rates on their savings by agreeing to:

• Make banks tell customers when their interest rate changes on their transaction or savings account and improve disclosure requirements for basic deposit products.
• Require financial product comparison websites to better disclose what determines how products are ranked and the financial relationships they have with recommended product providers. (Note: Mozo strives to be clear and transparent on all product comparison info. You can read more about our expert approach here).
• Make it easier to switch loans by ensuring customers have direct and easy access to the forms needed to leave a mortgage.
• Work with banks to help improve how customers are notified about bonus interest rate offers and when an introductory lower interest rate period ends, including through the potential development of industry standards.
• Ask Treasury to investigate how behavioural economics and prompts could be used in the banking sector to encourage consumers to switch.

According to Treasurer Jim Chalmers, the measures will “help create a more dynamic, diverse and resilient Australian banking sector, which is good for consumers, good for industry and good for the economy.”

The announcement is the result of the Australian Competition and Consumer Commission’s (ACCC) extensive inquiry into the banking sector in 2023.

The ACCC completed its Inquiry into retail deposit products in December 2023 and its Inquiry into home loan pricing in 2020.

In addition, there will also be a review into the challenges faced by small and medium sized banks led by the Council of Financial Regulators (CFR) in consultation with the ACCC.

The review will focus on the role small and medium sized banks play in providing competition in the sector and the regulatory and market trends affecting them.

Our goal at Mozo is to help readers find the leading deals across a range of personal finance products. For example, our experts crunch all the numbers to determine our Mozo Experts Choice Award winners, including the top home loans in the market. Be sure to check them out!