RG 220
Early termination fees for residential loans: Unconscionable fees and unfair contract terms
Issued 9 November 2023. This is a guide for lenders who provide home loans or residential investment loans (residential loans) regulated by the National Consumer Credit Protection Act 2009 (National Credit Act).
In plain English
This guide explains rules around early termination fees for residential loans, focusing on fairness and unconscionable fees.
RG 220 applies to lenders providing residential loans regulated by the National Credit Act. It clarifies how to avoid unconscionable fees and comply with unfair contract terms laws. The guide was issued on 9 November 2023 and helps lenders understand their obligations.
Why it matters
Lenders must ensure early termination fees are fair. This protects consumers and reduces the risk of legal challenges or complaints. Review your loan contracts to ensure compliance.
AI-assisted summary, grounded in the source link below. Generated 2026-05-23 via gemma3:12b.
Issuing regulator
ASIC →Topics
Source: https://www.asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-220-early-termination-fees-for-residential-loans-unconscionable-fees-and-unfair-contract-terms/. Rules Mate indexes + summarises; always verify against the regulator's live publication.