Lack of mortgage competition to hurt customers and boost Australian banks’ profits

In half-year financial results Westpac says pressure on profit margins has eased with its pullback from aggressively competing in the home loan market

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Mortgage holders are facing a lack of vigorous competition from the country’s major lenders, creating a scarcity of good deals, while at the same time elevated interest rates and high living costs push more households behind on repayments.

Westpac disclosed in its half-year results on Monday that mortgage competition had tempered in a trend that is good for bank profitability but bad for customers seeking new loans or refinancing old ones.

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