On 18 September 2012, ASIC released report 300 titled ‘Review of Early Termination Fees for Residential Loans entered into before 1 July 2011’.
From 1 July 2011, early termination fees have been prohibited on new Code regulated loans secured by residential property. However, many residential loans entered into before 1 July 2011 include a fee styled either ‘early termination fee’ or ‘deferred establishment fee’ (both called ‘exit fees’ in this report). More…
