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HashChing is Australia’s first online marketplace allowing consumers to access great home loan deals without having to shop around. Completely FREE to consumers, HashChing connects you directly to verified mortgage brokers who can further negotiate a better rate from the lenders and save you time, hassle and money.

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Nayesh

2 years ago

Agree to Michael. Its important to know the break cost and then determine if new rate will justify the savings after breaking the fixed rate. I suggest you contact your existing lender and get a payout figure which will assist in the above exercise.

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gregory

2 years ago

i can advise you now that it won't be economic to break the fixed loan. the numbers are not in your favour. you will just have to wait it out.

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Michael

2 years ago

Evening Eugene, this would depend solely on two things 1) being the breakcost, please contact your lender and obtain a payout figure. With this figure ask them clearly what is the break cost 2) will this breakcost be recouped in the first 1-2 years by way of interest saving and cash back rebate. Once you have a payout figure please get in touch by navigating to my HashChing page and let's chat further. Cheers Michael

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Fiona

2 years ago

Hi Eugene, As with all the other Brokers, I would definitely contact your existing bank first to find out what the fixed rate break cost will be. As you have less than 12 months to run on your fixed rate, you might be surprised that the break cost is not as much as you expected it would be, and it may be financially beneficial to break the term to secure a lower interest rate, however, this would be something to discuss in a holistic overview of all of your finances. If you wanted to discuss this further, or meet to review, please feel free to contact me any time. All the best, Fiona

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Morris

2 years ago

Hi Eugene, check with your bank on the breakfree costs, most lenders will base the break free cost on the difference between the rate you fixed and their standard variable interest rate and that can vary from bank to bank, however i dont think it will be more than $2000.00. depending on the interest rate currently being charged and the interest rate i am able to get for you which should be around 3.69% PA, then we can work out if its worth changing the lender. please feel free to contact me for a quick 5 minute assessment to determine the best option for you.

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Matthew

2 years ago

Hi Eugene, Like the rest of the answers on here I would check with your current lender first to see what the payout figure might be. With any luck they might offer you a better deal to stay with them. When you have the payout figure its always worth getting a broker to have a look at your situation to see if they can save you some money. Matt

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Mark

2 years ago

Hi Eugene. There will be a break cost so would only make sense to refinance if there will be a saving with new interest rate. Drop me an email or give me a call and we can discuss. Regards Mark

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Guido

2 years ago

Hi, Eugene Thank you for your question. Breaking a fix term loan can - will an expensive exercise. I would recommend you ring your lender's customers service and ask for a payout figure compare this with your last loan statement. At the same time ask if they would change your fix term into a lower rate if you would extend the fixed term, or going into a new fix term contract. This is the only way to see your fees you would have to pay. In most cases, to break a fixed term, 12 months before the expiry date and pay the fees, this will cost you the difference of the lower to the existing interest rate the lower rate for years, and you would have no benefit of changing your lender or loan product.

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Thomas

2 years ago

HI Eugene, You will pay the break fee for the fixed loan. would you please find out what is break cost with your current lender. I will try to help you apply $1500 cash back rebate to cover part of your lost. and combine 2 loans in 1 lower interest rate loan. please call me back on 04****25

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kelvin

2 years ago

Short answer - generally expensive to break a fixed term loan - but like as been mentioned - check the costs and a broker can compare based on new loan scenario.

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Andrew

2 years ago

Hi Eugene, it will ultimately come down to what the break cost will be in comparison to the proposed new variable interest rate. ASIC has a calculator that can assist with determining the cost benefit ration - https://****neys****.au/tools-and-resources/calculators-and-apps/mortgage-switching-calculator. Alternatively, you can pay higher than your minimum repayments on the fixed loan which would offset the higher interest rate. Depending on the lender, the additional repayments may be redrawn if required prior to expiry of the fixed term. Please feel free to contact me via my profile page if you have any further questions.

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James

2 years ago

Hi Eugene, First step is to ask your lender re the break up cost for the fixed rate. Then we can evaluate whether you can get the interest savings to cover the break up fee. Some banks are offering cash rebate now for refinancing. Feel free to contact me through my Hashing page if you want more information. Cheers James

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Michael

2 years ago

Hi Eugene, It depends on your current Fixed interest rate, your current variable rate, the break cost and the refinance interest rate. Generally, if the saved interest over 1 year is greater than the break cost you would proceed. If not than you would not. Regards, Michael Clearpath FA

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Thomas

2 years ago

Hi you will likely face break costs for exiting the fixed term agreement. This can fluctuate greatly day to day but the largest factor is how far through the contract you are. You can jag a good payout figure sometimes, it may be worthwhile paying the low or $0 fees if this is the case to get a better rate. Get in touch with me and we can go into detail about this.

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Phil

2 years ago

Good questions Eugene, The first thing I would recommend is that you call your current lender to determine what the break fee is on your current fixed rate. Once you know that any broker on this site will be able to perform a through assessment to determine the savings you could have by refinancing either with the current lender or another. Good Luck Regards Phil

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Scott

2 years ago

Hi Eugene My advice as the first port of call is to contact your current lender and ask them that if you were to sell and or refinance, what the break costs would be? I would also suggest to ask them what the costs would be if you were to break the fixed rate and still stay with your current lender. It isn't likley to be a favourable outcome (as in an expensive excercise to break the fixed rate / term) for you, but it's certainly worth asking the question so you know where you stand. Scott

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