The Australian Competition and Consumer Commission (ACCC) this week released its mortgage pricing report, proving yet again why it is essential to have a mortgage expert on your side when securing finance. It concluded that the banks “opaque” pricing of discounts on home loan offerings has inhibited borrowers from making informed choices.
According to ACCC chairman Rod Sims, the banks’ pricing discount offerings lacked transparency, making it difficult for customers to obtain accurate information.
“The discounting by the big banks lacks transparency and it’s almost impossible for customers to obtain accurate interest rate comparisons without investing a great deal of time and effort,” Mr Sims added. “But the potential savings from these discounts are immense.”
Further, the report found that the average interest rates paid for basic or “no frills” loans are often greater than for standard loans offered by the same lender.“We think many customers who opted for ‘basic’ or ‘no frills’ loans thinking they are saving money would be surprised to learn they might actually be paying more.”
You can read the full article in MortgageBusiness