Swan giving banks a run for their money
The Commonwealth Treasurer Wayne Swan has urged home owners to consider switching their home loans from the big banks to credit unions. The Treasurer is preparing a “second wave” of banking reforms, including measures to crack down on mortgage exit fees. Borrowers can save $70,000 – $80,000 by comparing and switching from an average big bank mortgage to a cheaper lender. Mr Swan said he is 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.”
Source: The Australian