Gillard targets exit fees
(8 November 2010 – Australia) Prime Minister Julia Gillard has vowed to implement new measurers directed at cracking down on bank mortgage exit fees.
Ms Gillard has said the government will do more to make it easier for borrowers to switch between home loans.
The prime minister told the Nine Network over the weekend that planned measurers will add to competition in the banking sector.
Australian’s will this week see the operationalising of measures to crack down on unfair mortgage exit fees which tie people into banking products they no longer want, and they can get a better deal elsewhere, Mr Gillard added.
Ms Gillard’s comments follow treasurer Wayne Swan’s previously flagged measures to curb unfair exit fees from July 2011.
The big four banks penalise borrowers who leave a mortgage within the first four years to the tune of hundreds of dollars.
National Australia Bank and Westpac are the steepest demanding a A$900 exit fee, while Commonwealth Bank and ANZ each require a A$700 fee.
The prime minister told the Nine Network over the weekend that planned measurers will add to competition in the banking sector.
Australian’s will this week see the operationalising of measures to crack down on unfair mortgage exit fees which tie people into banking products they no longer want, and they can get a better deal elsewhere, Mr Gillard added.
Ms Gillard’s comments follow treasurer Wayne Swan’s previously flagged measures to curb unfair exit fees from July 2011.
The big four banks penalise borrowers who leave a mortgage within the first four years to the tune of hundreds of dollars.
National Australia Bank and Westpac are the steepest demanding a A$900 exit fee, while Commonwealth Bank and ANZ each require a A$700 fee.
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