NAB plans slashing exit fees for home loan switchers

The bank’s initiative of paying $700 fee charged by rivals sound commercial decision for the good of customers.

The mortgage war between the big banks has ramped up with National Australia Bank offering to pay the exit fees for people who switch their home loan from two of NAB's rivals.

The bank says it will pay the $700 fee charged by the Commonwealth Bank and Westpac when homeowners change lenders.

NAB's Lisa Grey says abolishing the fee will increase competition between the big banks.

"We feel there should be no barriers to move, we feel that customers should have the right to walk down the street," she said.

"That's why we [are] making this offer to CBA and Westpac customers who still have to pay a $700 early exit fee."

Ms Grey has denied reports the deal could cost the bank tens of millions of dollars.

View the full story in ABC News.