Swan takes credit for cheaper mortgages
The Government’s banking reforms announced in December last year, including a ban on exit fees, have already resulted in improved rates for consumers, according to Treasurer Wayne Swan (pictured).
NAB’s online subsidiary UBank recently announcing a standard variable mortgage rate more than a full percentage point below that being offered by the four majors, and Swan has released an announcement attributing the offer to the Government’s moves to “boost banking competition”.
“The big banks know that exit fees are a major barrier to competition in banking – which is why the Government has taken action to abolish exit fees on new loans from 1 July this year,” Swan stated.
Two of the big banks have abolished their mortgage exit fees for all customers “in response to our initial crackdown on unfair exit fees” while other big banks have also slashed fees or are offering customers cash to switch lenders, he said.
“The Government is introducing three broad streams of reform to empower consumers to get a better deal, to help smaller lenders put more competitive pressure on the big banks, and to secure our financial system so it can continue to provide a sustainable flow of credit to households and businesses,” Swan said.
“Vigorous competition is the best way to create a system that offers real choice for consumers, and we’re already seeing strong evidence of competition getting Australians a fairer go in banking,” he said.
Recommended for you
The new financial year has got off to a strong start in adviser gains, helped by new entrants, after heavy losses sustained in June.
Michael McCorry, chief investment officer at BlackRock Australia, has detailed how investors are reconsidering their 60/40 portfolios as macro uncertainty highlight the benefits of liquid alternatives.
Having reset its market focus to high-net-worth advisers, Praemium’s administration solution has been selected by Bell Potter in a deal that increases the platform's funds under administration by $6 billion.
High transition rates from financial advisers have helped Netwealth’s funds under administration rise by $3.7 billion in the fourth quarter of FY25.
