Lenders offering the most competitive interest rates, and mortgage borrowers will be amongst those who benefit the most from the proposed Australian federal government ban on unfair mortgage exit fees, according to Australian banking major NAB.

NAB says it welcomes the proposal by the Federal government which will implement tough new laws to counteract against unfair mortgage exit fees.

The lender says that the proposals would benefit bank customers, as well as those lenders who offered their borrowers the best value and competitive interest rates.

For over a year now NAB has offered the most competitive standard variable mortgage rate of all the major lenders.

For an average $300,000 mortgage, borrowers are currently $68 a month better off with NAB then they are with most of the other major banks.

The proposal by government is good for competition and will allow those customers looking to obtain a better deal on their mortgage the ability to obtain better rates.

NAB Group CEO Cameron Clyne said:

”While we are yet to review the full detail of the new laws we are generally supportive of measures that encourage even greater competition in Australia’s home loan mortgage market. If these new laws banning unfair mortgage exit fees encourage greater competition and give Australians more power to walk down the road and find a better deal for their mortgage then that’s a great thing for all Australians. It will be good for competition, good for bank customers and good for those lenders, like NAB, who have been willing to offer the most competitive interest rates. ”

As well as offering perhaps the most competitive interest rates in Australia, NAB was also the first lender to abolish a number of other fees, as well as double the number of ATM’s its customers could access without facing charges.

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