NAB exit fee deal could cause mortgage war

Monday 14 February 2011

Article by Mozo

On Saturday NAB announced that it would cover the $700 mortgage exit fees of two of its rivals who have refused to scrap the charges that are proving extremely unpopular with consumers.

NAB exit fee deal could cause mortgage war

Both NAB and ANZ have agreed to remove the fees but this latest move by the former could see banks battling even harder to win customers, according to a consumer group.

Christopher Zinn, a spokesman for Choice, said to AAP on Saturday that NAB's tactic could mean the end for exit fee charges as banks fight for custom.

However, he reminded customers to work out if switching provider would really add up in the long-term and urged people to compare home loans before making a decision.

"If you really crunch the numbers you may well find that there may be another offer (from another bank or credit union), that in fact, even if you pay an exit fee, over the life of the loan would save you money," he said.

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