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Jessica Darnbrough
ANZ has told treasury officials that its decision to scrap mortgage exit fees has resulted in a number of customers switching to other banks.
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Treasury markets group head Jim Murphy told a parliamentary committee yesterday, that he had been in consultations with Australia’s majors who said they have had significant loss of business through switching since they removed exit fees.
“We’ve got to take that on face value,” he said.
Late last year, both NAB and ANZ announced they would cut their $700 mortgage exit fees.
Meanwhile, CBA and Westpac have split from their main rivals by refusing to scrap mortgage fees before the start date.
Earlier this week, Westpac’s Gail Kelly said removing mortgage exit fees would only serve to hurt competition between lenders, as the nation’s smaller players would be rendered uncompetitive.
Ms Kelly’s comments echoes those from the wider industry.
In the last few weeks, many industry stakeholders have voiced their opinions on the government’s proposed blanket ban on exit fees.
FBAA president Peter White told The Adviser that the government would be incredibly “ignorant” to ignore the advice of the industry.
“Everyone is explaining to the government why removing exit fees will not help competition, but it seems they are not listening,” he said.
