Understanding costs of breaking your fixed home loan

A break cost covers our loss when you break your fixed rate term by:

• Making additional payments more than the annual additional payment amount allowed
• Repaying your account balance in full
• Changing to a variable interest rate or a new fixed interest rate
• Changing your repayment type, for example, moving to interest only
• Borrowing more money on an existing home loan
• Discharging your home loan.

It is important to understand what break cost may be applicable to you before making a deposit or changes to your fixed rate loan as you may incur a large break cost.

Fixed rate break costs are determined by multiple factors and as a result they change from day to day. These factors can include:

• The length of time remaining until your fixed rate expires
• The amount you are paying off your fixed amount
• The amount that interest rates have moved since the start of your fixed term.