Claims mortgage margins increasing
Monday April 13, 2009
It has been claimed the major banks are making $450 dollars a year more from each average home mortgage today than before the global financial crisis.
The Australian newspaper says the major banks have been cashing in raising their margins by exploiting weaker competition from non-bank lenders.
But the claims have been challenged by the Commonwealth Bank and Westpac the country's two biggest home lenders.
CBA spokesman Steve Batten says the $450 figure isn't consistent with the bank's experience.
He says margins on CBA's home loans have contracted while Westpac says its margins have been contracting for many years.
