Home loans competition 'needed'

Home loan lenders should ease the pressure on borrowers, it has been argued.

Opposition treasury spokesperson Joe Hockey has recently stated there is a lack of competitive pricing in the mortgage market, which is driving up prices.

This comes as the Federal Opposition has revealed its plans to boost competition in the industry, Yahoo News reports.

This may come as welcome news to those looking to compare low interest home loans.

Mr Hockey claimed the government should encourage investment in the market through creating home loans securities.

He went on to add that there is a perception among Australia’s two million small businesses that borrowing is going to be increasingly difficult in the coming years.

"If you’ve got competition in home lending, you’ll have competition in small business lending," Mr Hockey remarked.

Malcom Edey, assistant governor at the Reserve Bank of Australia, recently spoke at the Annual Retail Financial Services Forum and claimed the housing market was strong.

He claimed that despite the global economic downturn, Australia’s home loans market had fared well.

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