Treasurer urges home owners to get a better deal
(6 December 2010 – Australia) Treasurer Wayne Swan has called upon home owners to consider switching their loans from the larger banks to credit unions.
Mr Swan made the call to home owners as he backed a new website that suggests families could save up to A$2,500 a year.
The treasurer is now preparing to unveil his "second wave" of banking reform, including measures to crack down on mortgage exit fees.
Mr Swan has also backed consumer group Choice’s new Compare, Switch and Ditch campaign.
The Choice online mortgage calculator offers the case study of a $300,000 variable mortgage with the ANZ bank that could be reduced by $85,000 if families switched to Mortgageport's Essential Home loan product or Better Option's 6.64 percent rate.
And borrowers could save more than $75,000, according to the website, by switching to Newcastle Permanent or IMB.
In his weekly economic note, the Treasurer said he was a 'big believer' in the competitive power of the smaller lenders, regional banks, credit unions, building societies and wholesale lenders.
'That's why I've been working for years to support their ability to fund cheaper loans through our $16 billion investment in residential mortgage-backed securities so they can really give the big banks a run for their money,' Mr Swan said.
'That's why we've cracked down on unfair mortgage exit fees, which has already led two of the major banks to remove theirs in direct response, and it's why we brought in an account switching package to help consumers more easily move their deposit account.'
Choice's Better Banking campaign director, Richard Lloyd, said the free online calculator showed consumers did not have to wait for banking reform to get a better deal.
'People who are proactive and can spare a few minutes might be surprised at how much they can save. Too many people are staying in cards, loans and accounts that are costing them too much -- switching makes real sense,' Mr Lloyd said.
Writing today in The Australian, opposition Treasury spokesman Joe Hockey says the time is ripe for further reform of the banking system, which reflects the post-GFC political reality that banks are 'too big to fail'.
'The Coalition is not calling for more regulation to address these challenges,' he said.
'It is not calling for greater interference in the commercial decisions of banks. It is calling for measures to facilitate greater competition in the provision of financial services so the market operates more effectively. It is also calling for specific recognition of the additional support provided to banks by taxpayers, a review of whether that support should continue, and if so, what the community should expect in return.
'The governor of the RBA has said banks are not like other businesses. We agree. It is time that unique position was formally recognised.'
The treasurer is now preparing to unveil his "second wave" of banking reform, including measures to crack down on mortgage exit fees.
Mr Swan has also backed consumer group Choice’s new Compare, Switch and Ditch campaign.
The Choice online mortgage calculator offers the case study of a $300,000 variable mortgage with the ANZ bank that could be reduced by $85,000 if families switched to Mortgageport's Essential Home loan product or Better Option's 6.64 percent rate.
And borrowers could save more than $75,000, according to the website, by switching to Newcastle Permanent or IMB.
In his weekly economic note, the Treasurer said he was a 'big believer' in the competitive power of the smaller lenders, regional banks, credit unions, building societies and wholesale lenders.
'That's why I've been working for years to support their ability to fund cheaper loans through our $16 billion investment in residential mortgage-backed securities so they can really give the big banks a run for their money,' Mr Swan said.
'That's why we've cracked down on unfair mortgage exit fees, which has already led two of the major banks to remove theirs in direct response, and it's why we brought in an account switching package to help consumers more easily move their deposit account.'
Choice's Better Banking campaign director, Richard Lloyd, said the free online calculator showed consumers did not have to wait for banking reform to get a better deal.
'People who are proactive and can spare a few minutes might be surprised at how much they can save. Too many people are staying in cards, loans and accounts that are costing them too much -- switching makes real sense,' Mr Lloyd said.
Writing today in The Australian, opposition Treasury spokesman Joe Hockey says the time is ripe for further reform of the banking system, which reflects the post-GFC political reality that banks are 'too big to fail'.
'The Coalition is not calling for more regulation to address these challenges,' he said.
'It is not calling for greater interference in the commercial decisions of banks. It is calling for measures to facilitate greater competition in the provision of financial services so the market operates more effectively. It is also calling for specific recognition of the additional support provided to banks by taxpayers, a review of whether that support should continue, and if so, what the community should expect in return.
'The governor of the RBA has said banks are not like other businesses. We agree. It is time that unique position was formally recognised.'
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