Financial expert Noel Hann is warning financial institutions to refrain from engaging in an all out war in the mortgage market. The warning comes as building societies have been forced to cut mortgage rates in response to banks and credit unions seeking a share of the multi-billion dollar mortgage market:
On Monday, the Victoria Mutual Building Society, VMBS, cut mortgage rates to 9 point 39 percent in response to rates of 9 point 5 percent being offered to consumers at NCB, JNBS and several credit unions. Other mortgagors with higher rates have been repricing customer loans to avoid losing customers.
While the cut in rates have been benefiting consumers, Mr Hann is warning against this practice.
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