Mr. Guy Debelle the Assistant Governor of the Reserve Bank of Australia said today in a financial services industry forum that the competition between Australian banks will limit a widening of interest rate margins paid by home buyers after mortgage loans dropped since the beginning of the financial crisis.

Debelle added that the home loans market remains contestable and that any excessive widening in margins will attract more banks to the market. However, Debelle ensured that the return of securitization will assist this even if it is not back to its state before recession.