Exit Fee Ban Bears Fruit
The NSW Government’s move to ban exit fees on new home loans has proven to be successful and a winner for consumers. Despite initial predictions that the controversial decision could force some smaller lenders out of business, research shows that competitive upfront or signup fees have ensured competition is strong, even for smaller establishments. Upfront loan fees have fallen, giving borrowers valuable savings and the chance to switch to a cheaper loan without the sting of exit fees.
Experts advise on using the comparison rate to find out your true savings. For a personalised comparison rate, ask lenders for their home loan fact sheet, which were introduced recently. The comparison rate will vary depending on the size of the loan, and remember that the comparison rate displayed in promotional material is not necessarily what it will be for you. It’s easier than ever to compare loans and lenders.