A recent ACCC report has levelled major criticism at the major banks regarding their mortgage pricing behaviour. The ACCC reviewed ANZ, CBA, Macquarie Bank, NAB and Westpac and found:
- Mortgage pricing is opaque and there is a high cost for consumers to individually research mortgage interest rates. The ACCC found banks make it hard for consumers to shop around and there is a lack of transparency in pricing discounts.
- Banks tend to engage in “synchronised pricing behaviour”. This means they tend to change interest rates as a group and very few banks will differentiate themselves.
ACCC’s finding showed banks tend to offer pricing discounts on a case by case basis thereby making it hard for consumers to shop around. Consumers and competition end up suffering.
Banks rely on borrowers being time-poor and not negotiating with the bank. When combined with the bureaucratic process the end result is the bank will profit from the consumer. The ACCC found for an average mortgage you could be paying approx $1,000 more in interest by not negotiating with your bank.
ACCC’s findings further strengthen the need for a professional to do all the legwork and find you an unbeatable deal. This person is you, mortgage broker,
Your mortgage broker will compare hundreds of products and negotiate with the banks to find you the best possible price given your circumstance.
What If We Finance since 2011 has publicly stated banks are profiting from consumers and this is reflected in our kick your bank in the @ss campaign launched 8 years ago. Our long-standing belief is mortgage brokers aid competition and helps you find an unbeatable deal.