Banks compete for mortgage customers: Bendigo and Adelaide Bank chief

Banks are increasingly aggressive in their bid to poach mortgage customers according to the chief executive of Bendigo and Adelaide Bank.

He says there is less competition for depositors in recent months as banks push for mortgages in a time of subdued demand for credit.

“On the assets side, it is quite aggressive on the home loan book at the moment,” Hirst said in an interview at the Bank of America investor conference in New York attended by The Australian Financial Review last week.

He says National Australia Bank’s offer of $1000 to switching borrowers equated to about $4 a week over the life of a mortgage.

Westpac has increased the discount on its new home loans by 0.9%, which ME Bank and AMP are increasing commissions paid to brokers and Macquaririe Bank has been competing aggressively for customers.