Home loan factsheets to benefit potential homeowners
A range of changes aimed at improving the prospects for potential homebuyers have been introduced by the federal government.
From January 1, lenders need to supply their customers with a home loan factsheet to help members of the public understand their choices more clearly.
According to the Banking Reforms website, the standardised format will allow consumers to view their options in a concise manner - with important figures highlighted throughout the document allowing people to "compare apples with apples".
Financial comparison firm RateCity has welcomed the move, with chief executive Dan Smith saying that it will help first homebuyers understand their
Smith asserted: "Anything that simplifies the lending process and encourages greater transparency in the home loans market is a good thing for competition.
"The factsheets will be standardised so lenders will be required to provide borrowers with information in the same way, making the comparison process easier."
For residential real estate markets, the improved availability of comprehensive data on home loan rates combined with a common format could help to improve consumer confidence and eventually drive an increase in market participation.
Even those who already own their own home could benefit, either through exploring their refinancing options or being moved to purchase and investment property.