Competition in the mortgage market

by Rachel Seymour 4/12/2008

 Competition in the mortgage market

Mortgage Choice managing director Paul Lahiff believes that competition in the Australian mortgage market is great for consumers.  As financial institutions develop new and innovative products and services, and use improved technology, borrowers have greater choice and better products.

Competition in any market is good as it tends to bring down the costs to consumers, allow for great choices and consumer control.

A particular example of this competition has been the high levels of competition in the Australian residential mortgage space. The introduction of mortgage managers and mortgage brokers and the addition of foreign banks such as ING and HBOS has produced significant benefits for Australian consumers, particularly in helping many to buy their first home.

 Mr Lahiff also says that an extensive and competitive lending market is a necessity when providing a "fair go" to consumers looking for a mortgage.

The competitive market offers home buyers broader choice, and puts downward pressure on interest rates and fees.




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source: The Australian
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