Home loans customers urged to beware exit fees
Article by Mozo
A recent article has urged Australians to make sure they get the deal that is best for them when comparing home loans.
Despite a raft of cuts to penalty fees from some lenders, the Sydney Morning Herald explained one major charge is to remain in place the home loan exit fee.
The newspaper explained the charge can be around $10,000 to change lenders and noted some property owners are being forced to keep their agreement, even if more cost-effective ones are available.
Consumer Action Law Centre director of policy and campaigns Nicole Rich stated banks should not describe the levy as a "deferred management fee" and there should be more clarity in agreements.
The newspaper quoted her as saying: "Call it what it is, disclose it up front and disclose it very clearly up front – and as a dollar amount and not a percentage that varies depending on when you might terminate."
A number of lenders recently cut fees on overdrafts and late payments, including Westpac and St George Bank.
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