By: Staff Reporter
Mortgage exit fees could soon become a thing of the past.
According to an article in The Australian Financial Review, Macquarie Equities analyst Tom Quarmby said yesterday that the government and corporate regulator could look to demolish or cap mortgage fees when the Unfair Contracts Term is introduced later this year in the amended Trade Practices Act.
The Act is expected to be amended in July, along with a raft of consumer protection reforms.
According to Mr Quarmby, consumers could face total break fees of $2,000 to $5,000.
“In the past, major banks have priced pretty much in line, but the recent widening n lending rates means more incentive to shift,” he told the daily.
“The prevalence of high mortgage exit fees means it’s difficult to make decisions based purely on price.”
At current, non-bank lenders have, on average, the highest mortgage exit fees.
A NAB spokesperson has said the bank is currently reviewing its $900 exit fee.
