Yellow Brick Road announced today that it will remove the exit fees on its standard variable home loan products as of December 1 this year.
The move comes off the back of the Australian Securities and Investments Commission’s (ASIC) recent issue of exit fee guidelines which aim to make it easier for consumers to move between lenders.
While Mark Bouris, executive chairman of Yellow Brick Road, applauded the steps taken by ASIC and the federal government he said consumers also needed to understand how they can secure a better deal.
“We recommend people follow four simple steps,” he said.
“Firstly, make sure you know your current home loan interest rate. Then do some comparisons – for most borrowers it’s as easy as having a look at the rate comparison table in the Sunday newspapers.
“Then, if you find a cheaper home loan, negotiate with your lender and ask them to match the new rate. Finally; start to switch and save,” he said.
Along with removing exit fees, Yellow Brick Road also recently announced a pledge to not raise its rates beyond the official RBA interest rate rises until at least February 1 2011.