The final version of ASIC's guide for lenders on its approach to break fees on home loans is a little friendlier towards borrowers and a little stricter towards providers than the first draft.ASIC's guide is not particularly radical, however, and will not add or detract much zest to existing levels of competition, as the certain rattled Labor politicians have suggested it might.The purpose of the ASIC guide is to help lenders understand how the regulator will go about enforcing the new national credit laws, as they relate to early termination fees for residential loans.The guide makes clear that fees that "penalise" a consumer are "not likely to be reasonably necessary to protect the lender's legitimate interests."ASIC writes in the guide that exit fees of this nature are likely to create a significant imbalance in the parties' rights (one of the tests a court would consider) and may also cause detriment to the consumer (a second test a court would consider).Common elements in current break fees will still be allowed, including the recovery of costs arising from offering an introductory or honeymoon rate for a period.Break fees when a fixed rate loan is terminated will also be allowed.Ordinary costs of winding up a contract will not, however, be allowed.Hefty exit fees on home loans are charged by only a few non-bank lenders and the worst examples in the market now relate to lenders that stopped writing new loans because of the GFC.