I often get asked what are the early exit fees for home and investment loans. With some lenders charging up to 2% for exiting a loan early it is important to read the fine print before signing on the dotted line.
Below are the exit fees you will pay for the following lenders -
Commonwealth Bank – $700 in the first 4 years
Westpac- $800 in the first 4 years
ANZ – $700 in the first 4 years
NAB – $900 in the first 4 years
Citi Bank – First year = $1500, 2nd year = $1,200 a the 3rd year = $1,000
AMP – $1,000 in the first 4 years
ING Home Loans – Year 1 = $1,500, Year 2 = $1,050, Year 3 = $700, Year 4 = $350
Suncorp – $1,400 to $800 in the first 4 years
St George – $1,000 first 3 years
RAMS – 1% of the original loan amount in the first 3 years
Bank West – Nil
The above fees do not include discharge of mortgage fees or break costs if exiting a fixed rate loan early. Most lenders charge between $200 and $500 to discharge the mortgage. Breaking a fixed rate early varies significantly as it is calculated using the current interest rate at the time and the term remaining on the current contract. Usually there are zero exit fees if the wholesale fixed rate is higher than the contracted fixed rate.
If you have any other examples or have encountered excessive exit fees please make a comment below.