Competition

Q.  Aren’t the banks better because they’re always advertising very cheap interest rates?

A.  No, in fact all bank interest rates for residential loans are less today, because non-bank lenders forced down rates through strong competition over the last 15 years.  Australia must have a non-bank alternative, otherwise banks will charge what they can get away with and their profits will sore even higher. 

Q.  Isn't the Federal Government always promoting competition in the Australian economy - how does this work with lending and how does it effect my mortgage?

A.  The Federal Government now funds large numbers of mortgages in Australia, as part of its response to maintain economic activity through the Global Financial Crisis.  Most of the funds we administer are currently provided by the Federal Government through the Australian Office of Financial Management and are regulated to protect Borrowers. This has fostered continued competition within Australia's mortgage market and means that your loan with First Australian is very competitive.  The interest First Australian charges on loans is kept to the minimum.  Borrowers at First Australian are charged only what is necessary to raise the funds and administer the loan.