ACCC pans big banks

THE consumer watchdog says there are “signs of less-than-vigorous price competition” on mortgages between Australia’s big four banks, who make it difficult for customers to compare rates.

Australian Competition and Consumer Commission chairman Rod Sims says the organisation’s interim report into mortgage pricing also found banks favour new borrowers over existing customers, and many consumers could easily save money by switching lender.

“The discounting by the big banks lacks transparency and it’s almost impossible for customers to obtain accurate interest rate comparisons without investing a great deal of time and effort,” Mr Sims said.