The Queensland Greens have responded to the RBA’s decision to keep interest rates on hold despite growing mortgage stress by reiterating calls for a Queensland Public Bank that would offer interest rates 1.5% below the Big 4 banks for owner-occupier mortgages.
Based on Tuesday’s decision, under the Greens’ plan Queensland owner-occupiers could access a variable home loan from a State-owned bank with an average 5.32% interest rate.
Greens MP Michael Berkman:
“Queensland mortgage holders can’t go on like this, desperately waiting on the RBA for the slightest relief from interest rates.
“Even if rates fall next year, the big banks will keep overcharging people on their mortgage for pure profit.
“A publicly owned bank with cheaper mortgage rates would protect Queenslanders from being continually tormented by the RBA and the big banks.
“The Greens’ plan for a publicly owned bank would save average recent buyers $514 every month off their mortgage, making it easier for people to own their home in Queensland.
“Right now, $400 of the average monthly mortgage payment is pure profit for the big banks.
“By bringing back publicly owned banking in Queensland and offering rates 1.5% below the Big 4, we’ll take the pressure off households and save people having to sell their home due to sky-high interest rates.”
Background
The Greens will create a Queensland Public Bank to:
- Offer owner-occupier mortgage holders interest rates 1.5% below the Big Four banks, by cutting out corporate profits. Investors would not be eligible.
- Save the average new or recent first home buyers $6,165 every year or $514 every month, based on an average new mortgage of $531,000, compared to the Big Four
- Offer fair mortgage rates, credit cards, savings, transaction accounts for households, and cash handling & EFTPOS facilities for small businesses with no fees
- Drive down home loan interest rates among the Big Four by creating real competition in the banking sector.