Mortgage Exit Fees Banned
Written on the 11 April 2011 by G. Dean McKinnon
Until recently, the majority of lenders charged an exit fee if you paid out your home loan before the end of the term, which could add up to thousands of dollars. These fees discouraged, or in many cases, financially prevented you from refinancing your uncompetitive loan.
As of the 1st July 2011, the federal government has banned these types of fees for any variable rate loan which is secured by residential property. Unfortunately, loans obtained before the 1st July 2011, fixed rate loans, or loans secured by commercial property are still able to charge exit fees.
Some lenders have already removed exit fees from their loans and some lenders are also offering to help you pay your current loan's exit fees if you refinance with them.
Please contact us if you require a free review of your home loan.
Author: G. Dean McKinnon