Exit fees hit thousands of Aussies

Leaving a home loan to get a better deal elsewhere can seem like a good idea but it can cost thousands of dollars in exit fees.

However, as the mortgage market in Australia opens up to a more competitive mind frame, a number of ways to avoid such fees have come to the fore, saving Australians time, money and stress.

While a number of extra payments cannot be avoided due to the terms of the money loaned to customers, a recent report by news.com.au revealed a number of popular methods that consumers use in order to switch their mortgages.

Before taking out a home loan, consumers should get advice on what fees would apply in certain circumstances and how much they are likely to cost, according to the report.

BankSA general manager Chris Ward told the news provider that exit fees would only be charged on mortgages with a low-interest period.

However, Australian Central senior manager of retail banking Wendy Spurling suggested that exit fees can be avoided simply by asking the lenders themselves.

Ms Spurling added: "Get some advice on making sure you've got a loan that suits your needs, don't just look at the cheapest price - what are your longer term goals and how long do you intend to stay in this property?''

Above all, homeowners are advised that they make sure exactly what the terms and conditions are of the loan before signing up, in order to avoid any potential nasty surprises springing up.

Find and apply online for loan deals.

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