Things can change and circumstances may mean you need to break the fixed rate period of your loan.
You could do so by:
- Making a lump sum payment on your fixed rate loan except where an Annual Early Repayment Threshold applies*
- Paying out your fixed rate loan prior to the fixed rate period expiry date
- Switching to another home loan product including one with a lower interest rate
If you choose to break the fixed rate period of your loan, the Bank may incur a loss as a result. If that’s the case, you could be charged a Break Cost to recoup that lost revenue.
For example, if you take out a fixed rate home loan with us over 5 years, but you decide to pay out your loan after 3 years, we may need to charge you a Break Cost to recover any revenue that we lose as a result.
* The Annual Early Repayment Threshold is the amount of $10,000 in each 12 month period starting from the day your Fixed Rate Period commences on a Your Way Plus Home Loan. If you make repayments that exceed the Annual Early Repayment Threshold, we will endeavour to return amounts in excess of the Annual Early Repayment Threshold. If we are unable to do so, you may be subject to payment of a break fee.
For more information, please see Clauses 3A and 3B of our Consumer Lending terms and conditions and the Fees and charges brochure. Please note “Break Cost” are referred to as a “Break Fee” in these brochures.