The main Australian banks are talking about dumping the exit fees that they currently charge on mortgages.
This news may raise the hopes of many people, but for some it may be short lived.
There are a number of borrowers with fixed mortgages, who may be hoping that his also applies to them, and who think they can switch banks without paying the thousands of dollars that it would otherwise cost them in break fees when they exit that mortgage.
I doubt very much that the banks will include break fees in their “exit fees” definition.
And of course, there are many other countries that do not charge exit fees, however, they do charge more in the initial fees on setting up the mortgage.
Will our banks do the same, switch from an exit fee to an entry fee instead ?
Is it really going to be that simple for them ?
Watch these current “entry” fees: