It's hoped a new website will arm struggling Austrlians with the tools they need to choose the best home loan.
The Australian Securities and Investments Commission (ASIC) website will allow consumers to compare lenders mortgage costs over time before committing to a specific loan.
The initiative is expected to be similar to Fuel Watch and Grocery watch and the Federal Government is hoping it will increase competition between banks and other major lenders.
Treasurer Wayne Swan says the website will provide consumers with the total costs of various mortgage products, including exit fees, over a defined period.
"We have consistently said that we want the banking system to work for Australian families not against them," Mr Swan told Fairfax.
"That's why sensible initiatives like this one should be supported and we have empowered ASIC to do just that."
Documents obtained by Fairfax reveal the plan was suggested by ASIC chairman Tony D'Aloisio, who wrote that Australians had no way of gauging total costs over a defined period.
"ASIC could offer a comparable service for consumers," he wrote in a letter to Mr Swan.
"However, this would raise a number of policy issues and would require new and dedicated resources."