A break cost[#]or break fee is only charged if you pay out all or part of your fixed rate loan, make a change to the interest rate, payment or loan type before the end of your fixed rate period. If you break a fixed rate period then break fees will apply, otherwise, they won’t affect you in any way. If you’re uncertain, request a break cost quote or learn more from our break costs article.
When selling before your fixed period expires, avoid break costs[#] by porting your home loan.
Switch from variable to fixed or apply for a new fixed loan, and prepay up to $30,000, fee-free.
Paying off your home loan or thinking of moving banks before your fixed interest rate period ends?
We can help you with all your break cost+ questions and give you a break cost quote if you’re thinking of ending your fixed period early.
Call 132 558 8am-8pm, 7 days (Sydney time) or request a callback, and we’ll be in touch.
Rate includes 0.10% p.a. discount for LVR[#]up to 70%. Available on new 2-year Fixed Owner Occupier packaged[#] home loans, on P&I repayments. $150k min loan. $395 annual package fee and T&Cs apply.
Rate includes 0.10% p.a. discount for LVR[#] up to 70%. Available on new 2-year Fixed packaged[#] Investment home loans, on P&I repayments. $150k min loan. $395 annual package fee and T&Cs apply.
The break costs[#] formula that we use to provide break cost quotes is a complex one, which is the reason we don’t provide a break cost calculator for customers to use. However, put simply, it’s the difference between the wholesale interest rate applicable for your remaining fixed rate period, should you wish to switch or pay out all or part of your loan, and the wholesale interest rate applicable when you began your fixed rate period. We refer to this as the ‘difference in wholesale interest rates’.
Discover more about break cost calculations
Please call 132 558, 8am-8pm, 7 days a week (Sydney time), or request a callback if you’d like us to provide you with a break cost[#] quote.
To find out whether break fees will be applicable for your fixed rate loan you'll need to contact us. If break fees are applicable, we'll be able to give you a quote.
To find out more about break costs[#]or to request a break cost quote please call 132 558, 8am-8pm, 7 days a week (Sydney time), or request a callback.
Break cost[#] quotes are valid for 5 business days from the day the break fees are calculated. If you decide to proceed with breaking your fixed rate home loan, your request needs to be submitted within 5 business days of receiving the quote. For example, for a break cost calculated on Monday, the request must be lodged by close of business Friday of that same week.
Discover more about break cost calculations
To find out more about break costs[#] or to request a break cost quote please call 132 558, 8am-8pm, 7 days a week (Sydney time), or request a callback.
It’s common practice for lenders to charge break fees when you make changes that affect the loan agreement during a fixed rate period. The reason is, when you fix an interest rate, the lender can borrow the money from the money market at a wholesale interest rate based on the repayments you agreed to make until the end of your fixed rate period. If you don’t and you’re breaking the fixed rate home loan period early and there is a difference between the original wholesale price that was fixed for you and the new wholesale price, that difference becomes part of the break cost[#].
The amount you can prepay on a loan during the fixed rate period without incurring a prepayment or early repayment fee is $30,000. This amount is called the 'prepayment threshold'. You can calculate how close you’re to reaching your prepayment threshold by adding together all of the amounts that you've prepaid and deducting any amounts you've redrawn. You'll only exceed your prepayment threshold if the result is more than $30,000 at any time during the fixed rate period.
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