Major lenders have been urged not to take advantage of the current political “vacuum” and increase interest rates on home loan products.
Real Estate Institute of Australia (REIA) president David Airey said while the election outcome hung in the balance, the major political parties would be careful not to engage in any disputes that could potentially threaten their chance of government – leaving a window of opportunity for lenders to move on interest rates.
“Without a clear outlook on who will govern Australia, the major lenders need to be responsible and make sure they do not take advantage of the political vacuum and raise margins simply because they can get away with it,” he said.
“Knowing that they won’t be reprimanded while the Government is in caretaker mode provides an opportunity for lenders to take advantage of this situation,” continued Mr Airey.
“I call on lenders to put the needs of consumers at the forefront of their priorities and guarantee they will not act to increase lending rates on home loans and to small business in the current political climate.”