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Got a follow-up call today after some post-break negotiations. Minor success. 0.33% Interest Rate reduction applied to all borrowings (now 4.97% -- not a brilliant rate, but far better than nothing) which'll save me $1300 a year. It isn't huge, but the impact on servicability is going to...

If anyone's curious, I paid close to $40,000* for this valuable lesson. Who needs private school? * incl break fee and interest paid above the standard variable rate over the course of 3 years, 2 months (life of loan)

*flees country*

No feelings, just executed a plan. I'm not a very emotive bloke. However, it's opened the doors to my next IP purchase which is positive -- big improvement on serviceability, and my savings rate improves $600/month. Aiming to purchase in Q1/Q2 2014. I'm on variable for now. May consider...

I just broke the loan. $16.72k incl. fees.

Time will tell. Tomorrow may be a day of particular interest.

Break fee yesterday: $18.5k Today (spoke about 2pm): $17.4k

As soon as the break fee drops below $16,000, I will. If it doesn't dip, I'll happily cop a higher fee depending on how much time has passed. Each successive month of inaction is costing me an extra $600 in interest.

Fee has risen by almost a grand. Saga continues. I'll keep this post updated for my own interest as much as anything. Here's hoping it doesn't climb back to $22k over the next week. Jon, valuable input. Fixing some or most of the loan again is something I'll be looking at if it works in my...

Cheers. The numbers finally stack up, so it's the only logical thing to do.

'fraid not. And yes, I've been watching the break cost/market swap rates almost the entire duration of the loan. Started around 7k, rocketed up to 40k as rates dropped (almost as soon as I drew the loan), and has eased back since. It's dropped from >$22k a few weeks ago to about $17k at...

It was offered to me, but stupidly I opted for the comfort without realising the full consequences of my choice. It's for my PPOR ? even worse. Live and learn!

Thanks again everyone. Jon, very valid points. BV, Jon and others, I should have mentioned: > 8% fixed for another 12 years ...yep.

Thanks again folks. I'm still just after ideas. As Terry said, $1k is nothing to turn your nose up at and it may give me some bargaining power. BV, terrible rate, very lengthy term. I'm haemorrhaging money on unnecessary interest. If I break now the savings in interest, and ability to...

Thanks Terry. 2 is definitely an option. Wonder if I can show CBA a deal from another lender and ask if they will match the incentive.

Thanks. Shoulda mentioned, total borrowings with CBA are: $242k + $137k = $379k. With break fee included, $395k.

Pending swap rate movements, I'm on the brink of breaking my CBA PPOR loan and copping a $16k fee. Apart from a valuable lesson, is there anything I can gain from this situation? e.g. Tell bank I'm breaking to refinance with another lender and negotiate a better variable rate if I stay...