fbpx
Skip to main content
Click here for the new Financial Assistance Hub

ACCC report shows massive home loan discounts

15 March 2018

The Australian Banking Association welcomes today’s ACCC interim report into residential mortgages, which clearly shows very high levels of discounting in the Australian home loan market. It’s clear that competition is delivering better deals for customers, shopping around works and Australians should continue to do so to get the best discounts on the advertised rate.

The report itself states that “an overwhelming majority of borrowers with variable rate residential mortgages at the Inquiry Banks were paying interest rates significantly lower than the relevant headline rate” (the advertised rate). Discounts on home loans ranged between .78% and 1.39% below the relevant headline interest rate.

The advertised variable discount rate for home buyers today is 4.5%, close to the lowest ever recorded.

Data from APRA1 and Canstar further illustrates there is strong competition in the home loan market, with over 140 providers, offering over 4,000 home loan products. Truly a vast and competitive market for Australians to choose a home loan.

Other evidence shows that Australians are taking advantage of this competitive market and are shopping around. Research by Galaxy shows that:

  • 3 million people had switched banks over the last three years.
  • Of those who had switched banks over the last three years, two-thirds (68 per cent) found that switching was an easy process.

ENDS
Contact: Rory Grant 0475 741 007

1 http://www.rba.gov.au/fin-stability/fin-inst/main-types-of-financial-institutions.html

Latest news

1 / 3
Media Releases
Payment system reform: statement
8 December 2021

The Australian Banking Association welcomes the Government’s payment system reform plan, which will pave the way for modernisation and improvements that benefit customers and ensure Australia maintains a world-class payments system.

Read more
Media Releases
ABA welcomes Banking Code Final Report
3 December 2021

“This has been a thorough and transparent process and it has been encouraging to see the high levels of interest and engagement in the Banking Code.”

Read more
Media Releases
ABA Council appoints Peter King as new Chair
2 December 2021

The Australian Banking Association (ABA) Council has today appointed Peter King, Chief Executive Officer of Westpac, as Chair. 

Read more