The risk that continuing price war among major banks, however, will see a further squeeze on non-bank lender and ultimately less competition in the market.
Lenders will also try to maintain revenues by selling customers additional products, such as financial advice and Mortgage Insurance, according to a report released by Deloitte, Australia today.
New mortgages are at the lowest level of growth in 20 years, Deloitte partner and report co-author James Hickey said.
Growth in the $ 1.2 trillion mortgage market of less than six percent a year will
The Bank will have to strike a balance between the borrower with attractive discounts and provide shareholder returns, but consumers can expect to benefit, Mr. Hickey said.