Recent drops in fees should be used to attract new customers, according to a study by rate comparison website Rate City.
It found upfront fees had decreased from $707 to $693 over the past year, while exit fees – banned by the government in 2011 for variable loans – had dropped by $49.
Among the banks dropping fees were Bank MECU, Bank of Queensland, NAB
, The Rock
Building Society and ECU Australia.
Rate City’s Michelle Hutchison said brokers should be taking advantage of the lower fees to attract new customers.
“This [rate dip] shows that lenders are working harder to win over new customers by making it more affordable for prospective home buyers to enter the property market or for existing borrowers to switch,” she said.
She warned that not all lenders were dropping fees, making shopping around crucial.
“Not all lenders are competing as hard as some, as we’ve recorded 81 home loans lift their upfront fees since January last year. Upfront fees range from no cost up to about $1,000 which is why it’s so important to compare all the costs,” she said.