Cut to Mortgage exit fees
(29 March 2010 – Australia) Mortgage exit fees could soon become a thing of the past according to Macquarie Equities analyst Tom Quarmby.
Mr Quarmby told The Australian Financial Review, that government and corporate regulators could look to demolish or cap mortgage fees.
The possible changes would be structured around the introduction of the Unfair Contacts Term later this year as part of the amended Trade Practices Act.
The Act is expected to be amended in July, along with a raft of consumer protection reforms.
Mr Quarmby told the Daily Mirror that in the past, major banks have priced pretty much in line, but the recent widening in lending rates means more incentive to shift.
The prevalence of high mortgage exit fees means it’s difficult to make decisions based purely on price, Mr Quarmby added.
At current, non-bank lenders have, on average, the highest mortgage exit fees.
The possible changes would be structured around the introduction of the Unfair Contacts Term later this year as part of the amended Trade Practices Act.
The Act is expected to be amended in July, along with a raft of consumer protection reforms.
Mr Quarmby told the Daily Mirror that in the past, major banks have priced pretty much in line, but the recent widening in lending rates means more incentive to shift.
The prevalence of high mortgage exit fees means it’s difficult to make decisions based purely on price, Mr Quarmby added.
At current, non-bank lenders have, on average, the highest mortgage exit fees.
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