cost to break mortgage
Break costs are fees charged by lenders when you make extra repayments on a fixed rate home loan. Most lenders will allow you to pay a small amount off of your mortgage each year without being charged but if you go over this amount or pay off the loan entirely then you will be charged break fees.reak fee = Loan amount x Remaining fixed term x Change in cost of funds. Break fee = $300,000 x 2 years x 1%. Break fee = $6,000 approximately. IMPORTANT: This is an example only.