Is this the end of exit fees?

Monday 08 November 2010

Article by Mozo

Australian mortgage customers could be inspired to compare home loans safe in the knowledge that they will be able to switch banks after one expert indicated that exit fees could soon be a thing of the past.

Exit fees can cost customers upwards $900 if they decide to switch from their current provider in order to secure more attractive home loan rates.

However, the Daily Telegraph recently reported that senior officials at three major banks have said they are likely to make changes in order to avoid government intervention.

One official, who preferred not to be named, was asked if banks are set to act on the exit fee controversy and said: "Oh yeah, absolutely. Don't be surprised if you start to see the end of them very soon.

"I'm not sure the government can really tell us to get rid of them, but I believe there will be some movement on that before the government steps in anyway. I think the whole industry realises it is under pressure to dump exit fees and there is a real chance the banks will get on the front foot."

The comments could prove to be the push that some customers need to compare home loans and actively seek out a better deal.

This article is brought to you by Mozo – Helping you compare home loans
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