Home Loan Refinancing

The Cost of Refinancing Home Loans Will Be Axed!

Australian Federal Government Announces New Reform For Home Loan Refinancing.

The Treasurer Mr Swan recently met with the Council of Financial Regulators in Sydney in a final consultation before signing off on the plan to increase the portability for banking customers.

The plan, part of an effort to increase competition among Australia's major banks, is Mr Swan's first major piece of legislation since becoming Treasurer and could be introduced to parliament in the first sitting fortnight.

Mr Swan is keen to reduce or eliminate the switching and exit fees imposed by the banks on customers, particularly on home loans, which can cost up to $2000 to leave early.

How will refinancing your home loan benefit you?

"We want a competitive banking market out there, and those institutions that seek to increase their (profit) margins at this time I think will be judged very harshly by Australian families and by the Government," Mr Swan said.

"And that's why I made the point a month ago that we wanted to put together a package that made the market much more competitive and gave people the capacity to switch their banks if they didn't think they were getting a fair go with their existing bank."