Anger at ANZ mortgage rate rise


Regulator’s action on mortgage exit fees welcomed

Consumer group CHOICE says the ANZ Bank might not have been as greedy as the CBA but is still raising its home loan rates by an excessive amount.

The people’s watchdog says the variable rate hike by 0.39% to 7.80% will cost their customers significantly more than the bank’s decision to abolish mortgage exit fees and lay on six week long deals to encourage switching.

Director of the CHOICE Better Banking campaign Richard Lloyd, says another bank rate rise is another kick in the teeth to mortgage holders.

"This is ANZ showing a shocking disregard for hard pressed home owners and makes it all the more urgent that the voice of consumers is heeded by the government as it prepares moves to inject more competition into banking," says Richard.

Meanwhile CHOICE welcomes ASIC's guidelines about how existing credit and consumer laws can be used to limit mortgage exit fees.

"We want ASIC to be proactive and tough in enforcing these rules. The banks and others are on notice to get their house in order to comply with the law."

CHOICE will hold the first of its 'Have Your Say' Better Banking forums on the Gold Coast on the 19th November.

Go to www.choice.com.au/betterbanking for more details.

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