MORTGAGE exit fees will be banned in all new loans from next year as part of radical reforms in banking laws to be announced today.
As part of a package of reforms, the Treasurer and acting Prime Minister Wayne Swan will also give the Competition and Consumer empowers the Commission to launch an investigation into the price of the signaling between the four big banks.
price signaling that banks likely changes flag your interest rate upfront mortgage lending, which critics say invites rivals to follow suit and reduce competition.
The federal government will also create an official symbol of the smaller banks, credit unions and building societies will be able to show to show customers their deposits are guaranteed by the Government.
The ban on exit fees will take effect on July 1, 2011,...