The Commonwealth Bank is raising fees for home owners, despite the Federal Government asking banks to be compassionate to struggling mortgage holders.
The Commonwealth has raised its fee for people selling their home by 17 per cent, which means families forced by the economic downturn to sell their homes - potentially at a loss given the falling market - now have to pay the bank $350 on their way out, up from $300. This fee will also apply to those wishing to change their mortgage for a better deal.
And first homebuyers taking advantage of the boost to the first homeowners grant will be charged $150 to sign up with the bank, up from $100.
That puts the Commonwealth - which made $4.7 billion in profit last year, including $1 billion in lending fees - in line for an even bigger slice of the $14,000 Government lifeline for new homeowners.
No other lender is planning to increase rates, but the CBA announced this latest round of price hikes in a letter to mortgage brokers.
Home owners will be used to lenders hiking fees, despite the Reserve Bank of Australia lowering rates. When the RBA cut rates for four consecutive months, not all of the banks passed on the full savings to customers. Following the December rate cut of 100 basis points, only four lenders passed on the cuts in full, with the other lenders only passing on part of the cuts. The Commonwealth Bank was first out announcing they would pass on the savings in full to home owners and cut their standard variable home loan rate by 100 basis points, down to 6.74 per cent.
Yesterday, Deputy Prime Minister urged the banks to show compassion to home owners and be nice to Australian families doing it tough. While lower interest rates have made it easier for people to meet repayments, managing director of Fujitsu, Martin North is worried the rising unemployment rates will push more families into mortgage stress by the end of the year.
Welfare groups have been overwhelmed by people asking for financial counselling and have asked the banks to provide staff to relieve the burden.
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