Hijacked over mortgage fees

Banks are enforcing hefty fees for home-owners to roll over their fixed term loans, brokers say.

With most terms ranging from six months to three years, and mortgages split into two or three loans, some borrowers could pay thousands of dollars more to fulfil the Kiwi dream.

ASB Bank has tightened up on enforcing fees faced by every mortgage holder when resetting their rates, according to brokers.

And it appears other banks could be heading in the same direction with one mortgage broker reporting that Westpac has also applied stricter criteria on fees that were previously negotiable.

Kiwibank has also said the $100 fee being charged will rarely be waived.

Edge Mortgages broker Andrew McMacready said ASB Bank had met with a number of brokers to explain that it would now enforce the fees "as a matter of course".

An ASB Bank document obtained by the Herald on Sunday said it introduced the new fee schedule to "reflect the time and complexity in providing the best in customer service".

To read the full NZ Herald article, click here

Posted: 25 Apr 2010

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