Exit fee ban sticks
The ban on exit fees on home loans will come into force from the beginning of July, after the Senate voted yesterday to uphold the regulations.A motion sponsored by the Coalition to disallow the regulations failed after a tied vote of 35 all. Steve Fielding, an independent senator, voted with the Labor government and the Greens to defeat the move.Providers have already removed exit fees on more than a third of home loan products since the Government adopted the policy in late 2010, according to financial services comparison website RateCity.More than half of all home loan products in the market still include exit fees on early loan repayments, though presumably all lenders will have fallen into line by late next week.