Sunday, April 12, 2009
Banks and mortgages
Major banks in Australia are making $450 a year more from each average home mortgage today than before the global financial crisis. The raised margin of bank funding costs reflects reduced competition as the major banks buy smaller competitors and non-bank lenders exit the home mortgage market. However Westpac spokesman David Lording said its home loans margins had been "contracting for many years".
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Actually, this is now being levelled out and mortgage holders who may seek refinancing or home buyers seeking the best mortgage will very soon have more choice amongst an increasing number of lenders.
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