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What's a break cost?

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.

Selling or using portability

When selling before your fixed period expires, avoid break costs+ by porting your home loan.

Fixing and early repayments

Switch from variable to fixed or apply for a new fixed loan, and prepay up to $30,000, fee-free.

Pay off or moving on

Paying off your home loan or thinking of moving banks before your fixed interest rate period ends?

Let’s talk break costs

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 now or request a callback, and we’ll be back in touch within 2 business days.

Call 8am-8pm, 7 days (Sydney time)

Our featured fixed rates

For a property to live in


2.59% p.a.^

fixed rate


3.58% p.a.

comparison rate*

2 Year Owner Occupier Fixed Interest rate. P&I repayments with Premier Advantage Package# ($395 fee.) T&C’s apply.

For an investment property​


2.84% p.a.^

fixed rate  


4.06% p.a.

comparison rate*

2 Year Fixed Investment Property loan. P&I repayments with Premier Advantage Package# ($395 fee.) T&C’s apply.

Frequently asked questions

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. 

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.

Options to tailor your loan


Package and save

By taking out a Premier Advantage Package# you could save up to $3,981 in your first year on a $250,000 loan.


Offset with variable

Not ready to fix? A variable loan with an offset account and unlimited extra repayments may be the answer.


Split for flexibility

Split your loan and have it all. The certainty of a fixed rate, an offset account and unlimited extra repayments.



Home loan calculators

From repayments to equity and borrowing power, find out where you stand with our award-winning calculators.

Things you should know

Credit Criteria, fees and charges apply. Terms and conditions available on request. Based on Westpac's credit criteria, residential lending is not available for Non-Australian Resident borrowers.

This information has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information and, if necessary, seek appropriate professional advice.

^Fixed rate home loan: The Bank will apply the fixed rate that is available at the loan settlement date, unless the customer locks a fixed rate in on the loan using our Rate Lock feature. The Fixed Rate - Lock-In fee is 0.10% of the loan amount. At the end of the fixed rate period the interest rate will convert to the applicable variable home loan interest rate unless a new fixed rate term is selected and then the fixed rate is determined two business days prior to the refix. Interest rate(s) displayed is for Australian Residents only. Rate lock is not available for progress draw loans under the construction option.


#Premier Advantage Package: Conditions of Use and $395 annual package fee applies. You must either hold or be approved for a Westpac Choice transaction account in order to qualify and continue to receive the benefits of the Premier Advantage Package. Applicants must have a Westpac Choice transaction account linked to the home loan at the time of settlement and must keep this account open for 60 days after settlement. Before deciding to acquire a Westpac Choice account, read the terms and conditions, and consider whether the product is right for you. Tax consequences may arise from this promotion for investors and customers should seek independent advice on any taxation matters.
Premier Advantage Package Conditions of Use (PDF 88KB)


*Comparison rate: The comparison rate is based on a loan of $150,000 over the term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

+ Break costs on prepayments and switching: Customers can make total prepayments of up to $15,000 (cumulative) for loans fixed prior to 21 March 2009, $25,000 (cumulative) for loans fixed between 21 March 2009 and 16 March 2012 or $30,000 (cumulative) for loans fixed on or after 17 March 2012, without costs or fees applying. Prepayments exceeding this threshold may incur a break cost.

If at any time before the end of a fixed rate period you switch to another product, interest rate (fixed or variable) or repayment type, then a break cost may apply.