Mortgage rates will fall under reforms, says Swan
Article by Mozo
Home loan rates will fall once a planned package of banking reforms comes into force, treasurer Wayne Swan has said.
Mr Swan yesterday (December 12th) announced a series of measures aimed at boosting competition in the mortgage marketplace by creating a "fifth pillar" in banking.
According to the Daily Telegraph, such reforms include providing new funding options for smaller lenders and rules against mortgage exit fees and the practice of banks signalling their rate movements ahead of Reserve Bank moves.
The measures would also make it easier to compare home loans by giving all Australians a personal account number that they could transfer at will.
However, while the planned changes are intended to placate consumers angry at rising rates at the big four banks, various industry insiders have expressed scepticism about their impact.
Speaking to the Australian, Bank of Queensland chief executive David Liddy claimed the measures still did not address the major funding concerns of smaller lenders.
"I think this puts the cause for a fifth banking pillar back 15 years," he said.
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