COMPETITION WATCHDOG TO INVESTIGATE BANKING SECTOR:
* Investigate prices charged for residential mortgages across entire market, including by major banks, smaller banks, and non-bank lenders;
* Consider how banks make pricing decisions, including passing on movements in the official cash rate;
* Examine differences in prices paid by new and existing customers;
* Examine differences between reference interest rates published by suppliers and interest rates paid by customers; and
* Investigate barriers that may prevent consumers from switching lenders.