Fixed rate break costs may be payable if, during the fixed rate period, your client:
- makes additional payments more than the annual additional payment threshold
- repays their account balance in full
- changes to a variable interest rate or a new fixed interest rate
- changes their repayment type, for example, move to interest only repayments
- borrows more money on an existing home loan
- discharges their home loan.
The break cost could be substantial. If you'd like to obtain an estimate of break costs on behalf of your client, please email us at customersolutions@macquarie.com.au.
If your client would like to break their fixed rate loan, our Personal Help Centre has more information to guide them through this process.