The Australian government’s decision to ban mortgage exit fees is achieving its objectives of improving competition according to the Consumer Law Action Centre.
CALC’s evidence for the effectiveness of the policy is that the Reserve Bank’s most recent report on bank fees attributes a decline in fees earned on housing loans, in large part, to “falls in exit fees charged by banks for the early termination of variable rate mortgages”.
CALC said: “This strongly suggests to us that the ban on exit fees has achieved its objective of improving competition in the home loan market.”
Source: Banking Day
