The Federal Government in Australia announced that it would put in place a new four part loan program designed to help homeowners save money over the lifetime of their loan.
The country's Treasurer, Wayne Swan announced the plan in which the Australian Securities and Investments Commission, known as ASIC will play a significant role in the home loan process here. Now, they will review the entry and exit fees which banks charge their customers when a customer opens a new account or closes a new account.
Swan announced that the government would take action and was prepared to force banks to change the practices. The listing and switching service which is to be implemented soon, will allow customers to move from one back to the next easier.
According to Mr Swan, as reported by the Sydney Morning Herald, "This initiative is a win for families but it is also a win for competition in the banking sector. This shows the Government has been determined to act decisively to protect Australians and their family budgets." "Consumers told us they wanted less hassle and this initiative delivers less hassle."
Many of the country's banks are not happy with such decisions, but most plan to meet the November deadline of implementation.
