Eight out of 10 Australian borrowers believe the government's planned bank reforms do not go far enough to help and that more could be done to crackdown on interest rate rises.

A new survey conducted by finance comparison website Mozo.com.au shows that borrowers are also cynical about the effectiveness of proposed measures to give the Australian Competition and Consumer Commission (ACCC) more power to investigate price signalling by the banks.

A whopping 84 per cent of home borrowers surveyed by Mozo say the government's proposed bank reforms will not be effective in keeping home loan rates down or in curbing the behaviour of the Big 4 banks.

Only 16 per cent of borrowers agree that greater intervention by the ACCC and increased industry competition will lead to lower home loan rates. The vast majority believe ANZ bank, CommBank, NAB and Westpac will continue to act as they always have.

When asked what additional steps the government should take to reform the banking industry, 67 per cent of borrowers still believe the reforms should include a super profits tax on the big banks, despite predictions from some experts that this could lead to increased interest rates.

Mozo managing director Rohan Gamble said, "The government has failed to capitalise on consumer sentiment for serious banking change. It is abundantly clear that the vast majority of home borrowers see the reforms as a cop out that will not change the behaviour of the Big 4 Banks in any meaningful way.

The Mozo survey also revealed that only 20 per cent of borrowers think the switching measures slated to take effect from July 2011, such as banning mortgage exit fees and introducing standard loan fact sheets, go far enough to help home borrowers get a better deal.

Despite their cynicism, 25 per cent of borrowers say they are more likely to switch to a credit union or building society from July 2011 when exit fee bans and other switching measures take effect. A further 20 per cent say they will not switch until account portability happens.

Mr Gamble said, "Although borrowers are clearly disappointed with the Government's weak effort, it is encouraging to see that one in four home loan customers are more likely to switch to a more competitive lender as a result of the reforms.

"At the end of the day, real banking change will only happen if consumers themselves start becoming more proactive about getting a better deal."