As the Senate inquiry into banking moves to Canberra, Australia's non-bank lenders have intensified their attack on Treasurer Wayne Swan's plan to boost mortgage market competition, arguing it will lead to higher interest rates.
The federal government wants to ban exit fees on new standard variable home loans from July, but the Mortgage and Finance Association, the peak body for non-bank lenders and home loan
brokers says this will hurt smaller players.
Association chief executive Phil Naylor has told a Senate hearing they'd have to put up their interest rates and if they did they'd be no different to the rest of the lenders in the market.
The inquiry moves to Canberra today with Commonwealth Bank chief Ralph Norris and ANZ CEO Mike Smith due to appear.
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