6Directions on matters to be taken into consideration in the inquiry

6 Directions on matters to be taken into consideration in the inquiry

Under subsection 95J(6) of the Act, the Commission is directed to take into consideration all of the following matters in holding the inquiry: (a) the prices charged, since 1 January 2019, by suppliers covered by subsection 5(2) for providing home loans, including: (i) differences between the prices advertised and the prices actually charged or paid, with particular regard to interest rates published by suppliers and the interest rates paid by customers; and (ii) differences between the prices charged to, or paid by, existing customers as compared to new customers; and (iii) supplier pricing decisions following changes in the Reserve Bank of Australia’s target for the cash rate (which is the overnight money market interest rate), including: (A) the extent to which any resulting price changes were due to changes in suppliers’ access to, and costs of, finance; and (B) the timing of suppliers’ announcements of price changes and their implementation of those changes; and (b) the extent and existence of supplier practices and strategies that create an impediment to existing home loan customers refinancing to an alternative supplier (commonly referred to as ‘switching’), including impediments resulting from product features and the effect of product bundling; and (c) other impediments to existing home loan customers refinancing to an alternative supplier, with particular regard to: (i) consumer behaviour, including consumer decision‑making, biases and choices; and (ii) the availability to the public of information about prices actually being charged, or paid, for home loans.