Four big banks in Australia are likely to dump their controversial mortgage break fees, according to an Australian newspaper, but a confirmation has yet to be made.
The newspaper said that the four major Australian banks, which include NAB, ANZ, Westpac and Commonwealth, are planning to dump the fees before the government forces them to.
Lifting the break fees or the exit fees would mean the mortgage holders could now switch lenders more easily. Major banks in Australia have been under pressure over fees and profits in the last two weeks. The four banks have all reported that their financial results for the year have a combined cash profit of more than $A20 billion.
Australian Prime Minister Julia Gillard and Treasurer Wayne Swan have both launched blistering attacks on the banks with Swan vowing a serious clampdown.
"The banks should not underestimate for one moment the determination of this government to put in place a range of reforms which will make the system more competitive," said Swan.