Wayne Ormond, founder and executive chairman of the fast growing Refund Home Loan mortgage broking company says the Government’s actions intended to make the transfer of mortgages easier and less expensive is ineffectual and shows a lack of understanding of the refinancing process.

Ormond set up Refund Home Loans in 2003 with the promise to refund its customers up to 50% of the commissions it receives from its lenders, which can often amount to more than $1,000 per contract.

Refund’s loan volumes have tripled every year since and Ormond says that in the current financial environment borrowers are responding in ever increasing numbers to the opportunity to gain any saving on the purchase of their home.

“We see at first hand the problems bank customers have when they want to refinance or take out a new home loan.

“The Government policy in this regard is way off the mark. It has ordained that banks must provide customers with a list of the direct debits and direct deposits on their accounts. Bank customers know what their situation is from their bank statements. What the customers want is for the banks to reduce the ridiculously high fees that the banks charge when a customer refinances with a different lender.

“The Government also needs to get together with State Governments in relation to Stamp Duty/Mortgage Duty to require all banks to allow for a transfer of Mortgage Duty without additional payment on refinancing.

“At the moment the Government is merely tinkering round the edges of the problem and give the appearance they are impotent to force the banks to change their policies in this matter.

“In the current environment, the Government must make it easier for home buyers to shop around if they feel they can get a better deal on their home finance without being severely penalised by their bank for doing so.”