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.
{ 9 comments… read them below or add one }
Hello.
We have our loan with Commonwealth Bank. Our loan was fixed for 7 years.. (we fixed it by advice of our Personal lender!!) Please can you help us? We believe we have been incorrectly advised. We are in the process of selling our property and Bank seems to ignore our requests to resolve the issue.
Help!!!
Thank you in advance.
Kind regards,
amp seems to have an additional 1% of original loan value fee if break/repay within 2 years which is not listed above
I am a Commonwealth unhappy banker. I also was on a fixed loan rate for 5 years and I too was advised to get out by one of the Commonwealth bank managers in one of Perths banks. I payed the break fee of $27,000.00 to get out of my fixed rate last year. If I would of done nothing my fixed rate would of been to the year 2013 and I was assured by the so called Commonwealth bank that it would not go up to this interest rate again!! What a mug I was. Im not an accountant and Im not a financial adviser, thats what we trust our banks to be in our interest!!! what a load of shit!!! I was really sucked in.
I tried to contact the bank to let them know that my repayments have not only gone up but up beond what I had locked my morgage into. From paying
5% for 6 months and then having the morgage go up to 7.81% in the next 6 months has left me out of pocked $27,000.00 on the break fee on the day. The Commonwealth Bank have been payed for interest up to the year 2013 and the interest has gone back to what it was before I broke the fixed rate and more. Where is my repayment for the differents from 2009 to 2013 4 years of interest payed up front + the added interest that they will get with the new interest rate, so Im paying double for my morgage what barsteds!!! I have
tried to contact the banks ombudsmen and they have not contacted me back
so much for banking with thieves!!!
Regards
Had enough and Yes can I get any Help to !!!!
Michele they care allowed to profit from it etc. BUT the break fee is meant to cover their potential losses from you breaking, the fact that its 27,000 is ridiculous and I would be arguing that it was incorrectly calculated by a long shot
ANZ also doing the ripoff thing! $10,000 exit fee charged on exiting my fixed rate $400K loan with 2.5 years to go on the fixed term.
Dont know what the current wholesale fixed rate is, but the variable rate has gone up 10+ times since I took out the mortgage. (I have a variable mortgage on my residential property) The ANZ were either way overcharging on fixed rates two years ago, or fixed rates have gone against all the variable rate rises. Either way, I am $10k out of pocket, and bitter and twisted about lenders!
I am also with the Comm bank they are nothing but con artist the only difference is for them its legal.
I pay my loan weekly this week they took out $1,150 extra claiming we owed money something to do with interest owing? I know for a fact i dont owe anything we never have missed a payment, when i told them this they couldnt give me a straight answer and they wouldnt give us the money back. i was counting on that money for groceries now me and my family have to live on the scrap of food thats still in my cupboard for a week.
Thank you comm bank for caring
NAB charged $150 to hand me my property title.
I am still reeling financially and emotionally 3 years on, after losing a break-fee to the Bank of Qld. After signing a 5 year fixed rate loan early 2008, I broke it 6 months later when forced to sell my home after a marriage melt-down. My broker had advised the max penalty could be a couple of thousand dollars max. After settlement I discovered it was almost $30,000! On top of agents commissions and moving costs, after 20 years of home ownership I had lost all equity, and am unable to save a deposit again due to high cost of renting! The banks explanation was the global crash meant they would relend the money at a lower rate so I had to pay the difference for their loss. Now the rates have climbed higher, they get twice the interest on their money! Do I have a right to claim anything back? Is there a class action out there I haven’t heard of yet?!
I have a variable rate loan with comm bank & still owe 300k , I have had the loan for 3 years , what fees can I expect when I sell the unit in a couple of months ?? anybody???