Coalition spilt over home loans exit fee plans

Thursday 24 February 2011

Article by Mozo

The federal coalition is reportedly spilt over the issue of scrapping exit fees on home loans.

Home loan exit fees cause politican infighting

With Canberra decision-makers having ruled that exit fees are to be abolished for new standard variable home loans from July, a number of major lenders have already opted to make such a move of their own volition.

However, while Labour seems keen to push ahead with the plans, the Sydney Morning Herald has reported that the coalition opposition are less keen on the idea, with the Liberal Party in particular of the opinion that this would do little to reform the home loans market in favour of everyday Australians.

"Just by trying to outlaw exit fees doesn't overcome the problem of the lack of competition," senior Liberal Eric Abetz was quoted as saying.

At the same time, however, the NSW Nationals have again stressed their support for the idea of ending exit fees on some home loans.

Lenders that have already abolished their exit fees include ANZ and, more recently, the National Australia Bank.

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