Those homeowners who have purchased or will purchase property before July 1st 2011 will have missed the bonus of being able to switch to other lenders to take advantage of a better deal without paying the existing exit fees. The banning of these fees unfortunately only covers new mortgages taken out after this date and not loans already established. This will mean families can benefit from the lower rates offered by rival banks and help them to better afford payments on their home. Real estate agencies should benefit by more people being willing to take on a mortgage for homes.

Buying real estate Werribee is an expensive project, with not only the initial cost of the real estate, but the added outlay for establishing a mortgage incurring stamp duty, establishment fees plus the ongoing interest rates. Online sites have mortgage brokers who find the best bank loan for people and have saved many people quite a bit of money over the loan period. Banks are well known for devising ways of deterring their customers from changing over to competitors who have more favorable terms. This is why they created exit fees to keep customers under their umbrella. Of course this is not a fair practice especially if the loan is for those with families to support.

Exit fees started out being called deferred establishment fees, which was the fee for setting up the loan when purchasing any real estate Point Cook for example. It was then waived to attract people wanting of a home loan. This may have seemed attractive initially, but later could be seen for what is really was when the customer wanted to take up a better offer elsewhere. They were then expected to pay the amount of the establishment fees that had previously been waived at the start of the contract. This could be amounts which customers may not have had available to them in order to benefit from the opposition’s lower rates.

Thankfully the Federal Govt has stepped in and the Treasurer has now banned "exit" fees from being charged. This will increase competition between the banks, especially the bigger ones. This ban will take place on the July 1st 2011, but only applies to new mortgages taken out. This is good news for all those borrowers who are having a hard time keeping their heads above water so to speak and especially for those who have families to support. Overall this means a better deal for all borrowers.