The Finance Brokers Association of Australia (FBAA) has welcomed drops in home loan mortgage rates by some smaller lenders, saying it would benefit borrowers if the big banks followed suit.
The lenders have cut their rates in a move aimed at attracting owner-occupier and investment borrowers.
“It is good to see the non-banks, second tier and small lenders supporting home borrowers,” said FBAA executive director Peter White.
“But at the same time, it is disappointing the big banks like ANZ seem disinterested in trying to work with borrowers by doing the opposite and putting their rates up.”
Mr White hopes that at some point, the big five will come to the conclusion that using their size to take advantage of the market is not helping anyone.
“We hope in 2018 the big banks remember where their profits come from, and that is borrowers,” he said.
“And we encourage the banks not to stab borrowers in the back with out of cycle interest rate movements, or unjustified fee hikes.”