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ISCOVER
Staff Reporter
Determined to reinvigorate competition within the home loan sector, AFG’s managing director Brett McKeon has put forward a three point plan for the federal government.
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According to Mr McKeon ‘bank bashing’ by the federal government is not helping to stimulate competition within the sector.
“Lender competition has been undermined in recent years and the proposed banning of exit fees is only the latest in a series of policy initiatives which
Have had seriously damaging consequences on mortgage lender competition,” he said.
Mr McKeon said yesterday that the government needs to adopt the following three point plan in order to bring back competitive lending.
“The first point in my plan involves the government providing an assurance that no further consolidation will be allowed by the Big Four banks, which already write over four out of five of all new home loans,” he said.
“Secondly, the government should meet with smaller lenders to discuss future policy initiatives that will stimulate non-major market share to levels typically seen in other developed countries. Currently in Australia, non-majors have around 15% of new mortgage sales. And thirdly the government needs to draft a policy that will create a more level playing field in providing access to funding for smaller lenders, enabling them to compete more effectively for market share.”
