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2010 Property Outlook

2010 Property Outlook

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The Age THE PACE OF HOME SALES SLOWING IN MELBOURNE

Heralds Sun Article 18/04/07 Sex Split on Ideal Ho

The Age Article: Chris Zappa 9th Aug 2010

The time betweem the listing of a property and it's sale has increased steadily since March in

Melbourne with houses and units spending an average of 73 days on the market in June, up from 67

in May, according to Australian Proerty Monitors. Those figures remain well above the long-term

average of 60days, the data show.

Govt Cracks Whip on Mortgage Exit Fees

Govt cracks whip on mortgage exit fees

Monday, 28 June 2010

The newly appointed Prime Minister has already cracked down on unfair mortgage exit fees, announcing several key reforms.

According to a joint statement by the Deputy Prime Minister Wayne Swan and Financial Services Minister Chris Bowen, the reforms will give ASIC the ability to take action against any bank if they charge an early exit fee which is considered “unfair” or “unconscionable”.

From July 1, consumers will also be able to challenge early exit fees that are unfair.

“Currently, some banks are using mortgage exit fees to lock customers into their home loans. Exit fees can be so high that there is no incentive to switch to another lender, even if they are offering a substantially lower interest rate,” the statement read.

“These new powers will make it easier for borrowers to switch to a competitor who offers a cheaper rate, providing a major boost for competition in the mortgage market.”

In order to give ASIC these new powers, the government had to pass two new national laws.

The first, the new Australian Consumer Law – reflected in the Australian Securities and Investments Commission Act 2001 –bans any 'unfair' term in a standard consumer contract.

And the second, the new National Consumer Credit Protection Act, will give ASIC further powers to take action on any fee which it considers to be 'unconscionable'.

Any mortgage exit fee or other term found to be unfair by a court will be declared completely void, and ASIC will be able to seek refunds on behalf of customers if the fee has already been paid

Source

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