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Symond on exit fee ban warpath

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Australian Broker | 24 Jun 2011, 06:00 AM Agree 0
Aussie Home Loans founder John Symond has vowed to Australian BrokerNews he will make consumers aware of the full impact of the exit fee ban upheld by the Senate this week
  • Melb Mortgage Manager | 24 Jun 2011, 11:39 AM Agree 0
    To cater for the abolishing of DEFS we have been forced to build in an additional margin to every loan written from 1 July. This will eb anywhere between 7 - 10 basis oints and will ultimately result in a higher cost to our borrowers and possibly a dimunition in our competitive position within the Mortgage industry. More power to the Majors. Swan and his treasury are fools.
  • Genk | 24 Jun 2011, 11:39 AM Agree 0
    Here Here, again anyone who voted for Labor or the water melon greens should be ashamed.
  • Martin J. Rollins MPIA | 24 Jun 2011, 12:01 PM Agree 0
    The medium term impact of ignoring the competitive landscape is even more scary.

    Exit fee's have acted as a gentle brake, a gentle pressure applied to the pedal of switching mortgages... this in turn has kept the refinance Genie in the bottle... but all that's about to change, and so will the mortgage landscape across this country.

    What Treasury is very worried about is:

    1. It massively increases refinancing and ostensibly puts the common home-loan in the position of being a 'retail & domestically traded instrument'.

    2. It serves as a highly viscose product increasing real-house-hold-debt.

    3. Decreases the aggregate equity in all domestic real-estate.... which in-turn amplifies the economic shock impacting Australia from elsewhere.

    4. Only serves one group, the four large Banking groups.

    The potential National risks far outweigh any short-term political agenda... this change has quietly been championed by the large four banks, and they didn't do it for the benefit of the retail customer, they see this as one of tools being rolled out by their Canberra based lobby groups working hand-in-hand with Wayne Swann i.e. They are using politicians for their own ends.... to kill competition.

    This is but one of the measures currently being introduced that is aiding one narrow group.... the problem will come in ten years from now when some economist somewhere lifts the lid and discovers that the National household LVR ratios present as a macro-economic risk to all of us.

    This does nothing to re-build National Equity, it just further erodes it... in Europe they might look at us and say "hey, wake up... look what happened to us... build equity, not debt".

    Tick Tock.
  • sidbroker | 24 Jun 2011, 12:05 PM Agree 0
    John Symonds. It is good to see you are not affraid to tell the truth to the nation. Ultimately this will lead to high costs to us all. Pity a lot of people cannot see forward to realise this. I hope you also point also how destructive nccp really is to the nation. It is almost impossible for self employed and small business people to borrow money currently.
  • SKEPTICAL | 24 Jun 2011, 12:24 PM Agree 0
    Well dsaid John Symonds!!
  • Advocate | 24 Jun 2011, 12:49 PM Agree 0
    Within the industry we have a good understanding of how this change will likely play out. However, Joe Public will see this as providing choice alone. It is critical that some of our high profile industry representatives take an early lead on explaining the other side of the story, in plain English. Now is the time.
  • Birdman | 24 Jun 2011, 01:19 PM Agree 0
    @Advocate - fully agree with your sentiments but now is not the time, now is too late!!!
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