Mortgage Exit Fees officially banned

Mortgage Exit Fees, which sometimes are as high as AU$7,000 will be banned from July 1.

The regulation, which did not need the approval of Parliament, is intended to make it easier for home borrowers to shop around for better deals, even if they already have a loan.

The Government believes Mortgage Exit Fees have been "one of the biggest roadblocks stopping Australians getting a better deal for their families".

Treasurer Wayne swan produced the regulation, which became law on March 23rd, 2011 as part of a package to boost competition among lenders, particularly the major banks.

Mr Swan believes it will allow borrowers to "walk down the road if their bank isn't doing the right thing by them".