A new report from the Australian Securities and Investments Commission (ASIC) has highlighted the ongoing cost of early mortgage termination across the country.
Despite the introduction of legislation banning this practice last July, homeowners who took out loans prior to the legislation are still being charged excessive amounts, Australian Property Investor reports.
ASIC commissioner Peter Kell told the news provider that while early termination can cost lenders money, they must stick to a strict code of conduct when setting the amount they charge borrowers for this action.
He described these fees as "unconscionable" if they exceed the actual cost of early termination to the lender.
ASIC published its findings following a review of 20 of the biggest mortgage lenders in Australia.
Earlier this month, the latest First Home Buyer Index from RateCity.com.au revealed first-time buyer activity is returning to normal across the country, with mortgage approvals proving particularly resilient in the Australian Capital Territory.
Posted by Steve Douglas
