Australia’s upper house Senate has supported the government’s decision to ban home loan exit fees, despite opposition from some quarters, according to a Reuters report.
The opposition filed by the conservatives, including independent senator Nick Xenophon, was rejected on 22 June.
One of the main reasons behind the rule was to encourage competition by diluting the power of the four major lenders in Australia. Xenophon, however, wanted the ban to be limited to the four big players, rather than applied across the industry.
According to a report by Grattan Institute, the majority of the people seeking mortgages intend to buy townhouses or apartments in city centres, rather than rural properties.
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