Exit fees cause unease
AUSTRALIA’S big four banks may not be as comfortable with a proposed ban on mortgage exit fees as they are letting on, a Treasury official says. Under the Federal Government’s proposed reforms to improve banking competition, exit fees on new standard variable home loans would be banned from July 1 this year. Many small players in the banking sector have already expressed concern about the financial impacts of the proposed ban. ANZ and National Australia Bank have already scrapped mortgage exit fees.