Treasurer Scott Morrison has ordered an ACCC taskforce to investigate Australia’s big banks’ mortgage rates and “police competition” in the banking sector.
Morrison told the Daily Telegraph the group will ensure the banks announce any planned changes to their fees, charges, interest rates, and explain why.
The ACCC will then determine whether those reasons are justified.
“It’s no good saying this is what’s popped out of our voodoo black-box and it’s terribly complicated and you won’t understand it, so you have to pay more,” Morrison said.
The ACCC inquiry will be conducted until June 30, 2018.
The Reserve Bank of Australia (RBA) left the official cash rate at 1.5% again this month, and repeated its concerns expressed in its April statement about the housing market, in which it said that “lenders need to ensure that the serviceability metrics that they use are appropriate for current conditions”.
Meanwhile, the big four have variable home-loan rates higher than 5%.
The Daily Telegraph has more.