There are rumours the big Japanese banks are looking to muscle in on Australia’s mortgage market, which could spark a major discount home loan war.
In Japan you can get a variable mortgage rate of just two per cent. So could rates really drop that low here?
They have swamped us with TV’s and electronics, and now Japanese super company Sony is planning a raid on our mortgage market.
And it’s not just the Sony bank. There is actually a raft of Japanese banks ready to do battle in the Australian market.
The Japanese banks have a competitive advantage which could see them smash our local rates. The average deposit rate in Japan at the moment is 0.1 per cent.
That’s about 600 per cent less than Australian banks pay for their deposits. They get money more cheaply, so they can afford to give it to us cheaply, which our banks will hate, but home owners will love.