Govt wants consumers to “get a better deal” on their mortgage

The federal government has unveiled a series of reforms to the banking sector, which aim to help consumers access lower home loan rates and higher savings accounts rates.

As part of the reforms, Treasury will investigate how behavioural economics could be used in the banking sector to encourage consumers to switch to cheaper home loans and banking products.

Also, lenders will be required to make it easier for customers to refinance their mortgage, by ensuring they have direct and easy access to the forms needed to switch.

Treasurer Jim Chalmers said these changes would “help bank customers get a better deal, including through more choice, lower prices and better services”. For consumers, that could mean:

• Getting alerted about lower-rate home loan options
• Being nudged to think about refinancing to a better home loan
• Having an easier, faster refinancing process

Those outcomes, if they occur, would be welcome, because the essence of a broker’s role is to make it easy for consumers to compare loans and, when necessary, refinance to a more suitable loan.