Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Government considers loan exit fee ban

Staff Reporter 3 minute read

The federal government may move to ban banks’ mortgage exit fees as a result of their failure to pass on the benefits of interest rate cuts to borrowers.

Cabinet sources reportedly told The Sunday Telegraph that the government was furious about the banks’ refusal to pass on this month’s rate reduction in full and was examining measures to increase competition for consumers.

Assistant treasurer Chris Bowen told the paper he was considering placing bank exit fees in a banned list of unfair contracts, in draft legislation, to be published next month.

“I’ve yet to reach a decision but a ban is one option,” Mr Bowen said.

Advertisement
Advertisement

Earlier this month NAB said there was no room to move on its home loan rates and ignored the full 25 basis point RBA rate cut, while CBA, ANZ and Westpac passed on just 10 of 25 basis points.

All banks have attributed rising funding costs to their decisions to hold some or all of the rate reduction.

 

Government considers loan exit fee ban
default
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

PROMOTED CONTENT


default

 

more from the adviser
Renee blethyn NextGen.Net appoints head of broker

NextGen.Net has appointed its inaugural national head of broker ...

BBS Summit 2021 ta Better Business Summit and Awards Sydney postponed

Due to the ongoing COVID-19 resurgence in Sydney, the NSW leg of ...

Andrew Moulds Darren Smith ta Lend adds FleetPartners to platform

Lend has integrated vehicle fleet leasing and fleet management pr...