Today, the Federal government finalised plans to ban mortgage exit fees to take effect from July 1 this year.
The regulation, which did not need the approval of Parliament, is intended to make it easier for home buyers to switch to another bank without the fear of being slugged up to $7,000 in exit fees. Already, ANZ and NAB have dropped exit fees even before the regulation has passed. NAB is also offering to pay people out of their existing exit fees when switching over from CBA and Westpac. A bank has apparently told the Treasury that they have lost significant business since removing exit fees.
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