Many borrowers are currently asking whether it is worth their while to “get off” their fixed rate and switch to the record low interest rates currently being offered by banks.
If you are considering a similar change to your Home Loan or Investment Property Loan please note there are several key points relating to “Fixed Rate Break Costs” you need to be aware of prior to making your decision to ensure that any change to your Home Loan or Investment Property Loan will be financially beneficial for you.
- The bank will charge a fixed rate break fee + an administration fee
- This fixed rate break fee is not a flat fee and can change on a daily basis
- The fixed rate break fee can be nominal or significant subject to your current interest rate and the remaining fixed rate term
- Banks will only quote the fixed rate break fee directly to the borrower
Q: Do I need to know the fixed rate break fee prior to breaking my fixed rate ?
A: Yes … This fee can be significant and the costs may exceed the potential savings you are hoping to achieve.
Q: How can I obtain my Fixed Rate Break Fee ?
A: Contact your bank via the telephone number which appears on your loan statement. (Note: Banks are reluctant to provide this information via email or internet banking)
As you can imagine the banks are currently experiencing high volumes of telephone calls which is resulting in extended delays in telephone queues, so I recommend you have something else to read or do whilst you are waiting for the bank to answer your call.
If you have any questions or concerns relating to your Home Loan, Investment Property Loan or Business Loan please feel free to call or email as you are a valued client of DPF Mortgage Specialists and our team is keen to help.
Once you obtain the Fixed Rate Break Cost simply email this information to david@dpfinance.com.au and I will complete the “Financial Benefit vs Cost” calculations and contact you to discuss your options.
