Hi Rowee. Breaking a fixed-term home loan can result in what's commonly referred to as "break fees" or "early exit fees". The amount you'll be charged depends on several factors: Interest Rate Differential: This is the difference between the interest rate you locked in at and the current market rate for a similar fixed-term loan. Remaining Loan Term: How much time is left on your fixed term can affect the fee. For example, if you break the loan in the first year of a five-year term, the fee might be higher than if you break it in the fourth year. Outstanding Loan Balance: The amount you still owe on the loan is also taken into consideration. However, it's important to understand that not all lenders calculate break fees in the same way
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I wonder how much is the fee when breaking fixed term home loan?
Hi Rowee. Breaking a fixed-term home loan can result in what's commonly referred to as "break fees" or "early exit fees". The amount you'll be charged depends on several factors:
Interest Rate Differential: This is the difference between the interest rate you locked in at and the current market rate for a similar fixed-term loan.
Remaining Loan Term: How much time is left on your fixed term can affect the fee. For example, if you break the loan in the first year of a five-year term, the fee might be higher than if you break it in the fourth year.
Outstanding Loan Balance: The amount you still owe on the loan is also taken into consideration.
However, it's important to understand that not all lenders calculate break fees in the same way
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Sure thing, thanks for the feedback!
More videos please
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