The financial services royal commission's first public hearings will focus on inappropriate or unsuitable lending in home loans, car loans and credit cards.

Buying a property is likely to be the most substantial, and perhaps the most stressful, financial transaction in the average Australian's life, senior counsel assisting the commission Rowena Orr SC said.

"The commission will hear evidence of events involving certain financial services entities in the context of home lending that suggest that consumers have not always enjoyed the right to be treated honestly and fairly when it comes to home loans," Ms Orr said on Monday.

"Some of these events may have involved breaches of the law, while others may have involved departures from community standards and expectations.

"The purchase of a car is also a transaction that must be conducted honestly and fairly, and yet our inquiries to date have revealed practices in relation to car lending that appear to depart from these standards," she added.

Around 5.8 million Australian households have a home loan, nearly all through a bank.

The banks, building societies and credit unions provide about $1.6 trillion in housing finance to owner-occupiers and investors, with housing loans representing the largest asset of authorised deposit-taking institutions.

The $75 million inquiry into misconduct in the banking, superannuation and financial services industry has so far received 385 public submissions, half of which relate to banking.

Opening the inquiry on Monday, Commissioner Kenneth Hayne QC stressed the importance of public submissions to the royal commission's work but warned it cannot look at all cases of misconduct.

"I understand fully that those affected by what they consider to be misconduct want their complaints recognised and considered and want those responsible held to account," Mr Hayne said.

"But I have to say that the commission will not have time to publicly examine every case of alleged misconduct."

A number of aggrieved consumers attended the one-hour initial public hearing, including one man who shouted to Mr Hayne about his house mortgage dispute with one of the major banks.

"What kind of hell are we dealing with here?" he yelled as the hearing ended.

Mr Hayne said the commission would use case studies and examples to identify the kinds of misconduct that have occurred, why it happened, what should have been and what was the response.

He noted that in many cases the fact that there has been misconduct has been established previously, or is now acknowledged or admitted.

"More is to be gained by looking at why this happened and at what was, and what should have been the response, than reproving what other processes have shown happened or reproving what is now admitted to have occurred."

Ms Orr said the financial planning and wealth management industry would also be part of the inquiry's early focus.

Australian Associated Press