Consumers in the dark on KFS

The Government's controversial home-loan key facts sheet initiative is struggling to get off the launch pad.

Mortgage lender MyRate reported yesterday that 64 per cent of consumers it had polled online had never heard of a home-loan key facts sheet.

In January, consumer association Choice reported that it had conducted a shadow shopping exercise involving a number of banks and had found that very few key facts sheets were being handed out to people enquiring about home loans.

Since January 1, lenders have been required to give home-loan borrowers a KFS upon request. The idea is to provide information about the loan in a standard format, so it is easier for borrowers to compare loans and shop around.

However, one drawback with the system appears to be that the lender does not have to provide the KFS unless it is requested.

A MyRate media statement issued yesterday cited an unnamed Treasury official saying: "The government is considering expanding the range of circumstances in which lenders have to provide key facts sheets, even if consumers don't explicitly request them."