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One industry stalwart has thrown his weight behind the recent calls for an inquiry into competition in the Australian home finance sector.
“It’s time to expose all the gimmicks and tactics used by banks to trick you into thinking you are getting a good deal when often you simply aren’t,” 1300HomeLoan managing director John Kolenda said.
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Mr Kolenda said 1300HomeLoan backed calls by the Customer Owned Banking Association for an independent inquiry into Australia’s banking system.
“Something has to be done about this ridiculous con,” he said. “It is too hard for consumers to make an informed decision based solely on a lender’s advertised rate and government attempts over the years to enforce greater transparency have only created more confusion.”
1300HomeLoan recently launched the Australian Lenders’ Index to track and report on the interest rates on offer from the six major lenders. Before the index release, consumers had no simple way to check on lender rates and make an educated choice on their home loan.
“The Australian Lenders’ Index measures the performance of the six major lenders, which account for more than 90 per cent of the home loan market, and has already ready found a wide variance in the loan products on offer.
“The index has drummed home the need for greater competition between banks, and 1300HomeLoan will strongly support an independent inquiry into the banking system if it would help achieve this competition and transparency.
“As mortgage brokers we know what goes on, but now the Australian Lenders’ Index makes clear how a consumer can save tens of thousands of dollars over the life of their home loan.”
Mr Kolenda said the Australian Lenders’ Index data showed that blind loyalty towards a lender from consumers could be costing them many thousands of dollars.
The index is backed by years of data tracking lender behaviour, including responses to Reserve Bank rate movements, he said. The analysis has been independently audited and is available to professionals and consumers free of charge at www.australianlendersindex.com.au
