July 29, 2014
Break costs are a fee charged by lenders when you make extra repayments on a fixed rate loan or you pay out the loan before the fixed term expires.
Paying out the loan can be through refinancing or selling so be careful when considering this with a fixed rate product.
Always request a break cost from your lender so there are no surprises. There are some lenders that do allow extra repayments on fixed rate loans so be sure to check with your broker.
Give us a call on 9585 7779 if you've got any further questions about break costs.