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The price war between Australia’s major banks has been met with scepticism by Australian investors and home buyers, a new survey has found.
According to a national survey by Loan Market Group, just 12 per cent of people believe the price war will spark “real competition” in the home finance sector.
Of the 420 respondents to the survey, 45 per cent thought the price war would simply serve to boost the profile of the major banks, while 23 per cent said they were unaware of any price war and 20 per cent welcomed the development but doubt it will last.
“There’s obviously some scepticism among borrowers about the potential benefits of the major banks trying to outdo one another to win over customers,” Loan Market Chief operating officer Dean Rushton said.
“But the bottom line is there are some good deals to be had and customers can save a lot of money by choosing the right deal.”
In recent weeks the major banks have taken an aggressive stance on home financing market share, with a raft of product discounts and major advertising campaigns to match.
Mr Rushton welcomed the increased competition as it will ultimately help borrowers secure a better deal, he said.
“The major banks competing head on can only lead to benefits to consumers,” he said.
“Loan Market has always been a strong advocate of increased competition in the home loans sector.”