Break costs are fees charged by lenders when you make extra repayments on a fixed-rate home loan. Most lenders will allow you to pay a small amount off of your mortgage each year without being charged. If you go over this amount or pay off the loan entirely then you will be charged a break cost.
But, banks don’t always disclose their break fees or how they will be calculated! For this reason, we’ve created this easy-to-follow guide for anyone considering a fixed-rate loan.
Use the mortgage break fees calculator to estimate your home loan exit fees.
Remember, paying a break fee isn’t always bad, you either pay the cost as a lump sum or you pay a higher rate of interest for the fixed-rate term. Currently, fixed-rate home loan interest rates are at record lows, and some banks and lenders are offering refinance rebates (cashback) as high as $4,000 to refinance your home loan.
In some cases, it may be better to refinance. You can use our break cost calculator below to determine just that.