Smaller lenders have lower rates

The Mortgage and Finance Association said it was untrue that the big four banks compete aggressively with each other because their products and rates are “very similar”.

The big four’s rates are also “appreciably higher” than those offered by many small lenders, the MFAA said in a submission to a senate inquiry.

“The problem for the smaller lenders is that they cannot access sufficient funding to establish a critical mass in the market.”

Despite government attempts, “nothing over the past five years has made any impact on the big four’s 80 per cent share”.

Source: The Adviser