Fixed Loan Break Fees
- Thread starter HiEquity
- Start date
Hmmm - timing is everything
I was quoted earlier this week
CBA
Loan 280k @ 7.8% fixed for another 14 months.
Break fee $3.4k
I'll ride it out.
I was quoted earlier this week
CBA
Loan 280k @ 7.8% fixed for another 14 months.
Break fee $3.4k
I'll ride it out.
Got a quote to break a 3 year fixed rate 6.95% till May 2010 from OneDirect...the quote was $3200 odd!!! 
I will be leaving that alone...thank you!
Have broke all the others....so only have two fixed at 7.45% till July 2010
and one at 6.55% coming off in May 2009 (I will leave this as it is now only 7 months away)
Cheers
Sash
I will be leaving that alone...thank you!
Have broke all the others....so only have two fixed at 7.45% till July 2010
and one at 6.55% coming off in May 2009 (I will leave this as it is now only 7 months away)
Cheers
Sash
Yes - timing is everything. I broke my remaining fixed rate middle of last week - CBA, $350K fixed for another 13 months @ 7.74%, cost only $200.
Yep, experience.
I know from my experience above, a factor of as little of 0.1% can increase the payout by 100%. I.e. $400 becomes $800.
I guess act or not depends on whether you intend to sell and cannot afford to hold?
If yu can hold tillthe end of the term then hopefully you drop heaps and lifes good as your property shouldhave gone up if rates are much lower. If not much lower, then you have insurance in place.
Peter
I know from my experience above, a factor of as little of 0.1% can increase the payout by 100%. I.e. $400 becomes $800.
I guess act or not depends on whether you intend to sell and cannot afford to hold?
If yu can hold tillthe end of the term then hopefully you drop heaps and lifes good as your property shouldhave gone up if rates are much lower. If not much lower, then you have insurance in place.
Peter
Dragging out an old thread here, sorry, but we just signed off on getting out of some fixed loans and back to variable with Members Equity.
They only have a 10 day window of opportunity to be signed and we just missed out and needed to get the figures redone, dreaded the thought of them costing many thousands more.
Well, pleasant surprise, they came back at many thousands less (about ten of them)
We were contemplaiting holding out to see if they got cheaper again after the next rate drop, but weakened and signed.
Of course ME couldnt tell us how they calculated the fee or if they felt they would get cheaper next time.
Any similar experiences out there?
Dave
They only have a 10 day window of opportunity to be signed and we just missed out and needed to get the figures redone, dreaded the thought of them costing many thousands more.
Well, pleasant surprise, they came back at many thousands less (about ten of them)
We were contemplaiting holding out to see if they got cheaper again after the next rate drop, but weakened and signed.
Of course ME couldnt tell us how they calculated the fee or if they felt they would get cheaper next time.
Any similar experiences out there?
Dave
No but the banks systems are so complex, mistakes are common. Most of time we dont know.
Thats why those programs out there that promise their cost back if they check and find no errors can offer the guarantee.
My advice:
Personally we were 7.64% and now are 7.62 and yet to see the 0.58% kick in. The additonal 0.75% is pure cream.
FYI CBA seems to calc on the actual rate not the announced rate. That is why they are cheaper, I think.
Peter
Thats why those programs out there that promise their cost back if they check and find no errors can offer the guarantee.
My advice:
- grap with both hands
- sign
- celebrate.
Personally we were 7.64% and now are 7.62 and yet to see the 0.58% kick in. The additonal 0.75% is pure cream.
FYI CBA seems to calc on the actual rate not the announced rate. That is why they are cheaper, I think.
Peter
I asked for a quote from CBA today to break $250k fixed at 7.6% until 2011, the cost is $17500
Its official, the time to break is over!
Peter
I asked for a quote from CBA today to break $250k fixed at 7.6% until 2011, the cost is $17500
Mind if we have some more deail?
Loand $250k ok
When fixed? 3 years in 2008.
Intersted for another person i know... Peter
Done, smiles allround
Dave
Wise you are, says Yoda!
Really is amazing the turn around.
Only six months ago it was "rate to go up another 1%" from the top! IMHO again Aussie has been saved by the world market. In 1997 the Asian crisis stopped rate rises, then GST, then tech wreck. We get lucky...
Personally I will be watching with interst to pick the bottom (or as close to up) and then lock for 5 maybe even 10 years. It did it in 2003 and enjoyed 6.19% for 5years ending, get this, in Sept this year! How lucky but more a#se than class. Inflation is not dead, just resting.
Peter
My wife has a friend that has recently separated from her husband and had to sell the house as she couldnt afford the mortgage payments on her own.
They bought the house in 1995 and sold a couple months ago. After a $17k break fee, she was left with $3k. They must have borrowed against the equity as the property value rose as many have done. The house was on the central coast NSW.
Wouldnt a $17k break fee p#$@ you off?
They bought the house in 1995 and sold a couple months ago. After a $17k break fee, she was left with $3k. They must have borrowed against the equity as the property value rose as many have done. The house was on the central coast NSW.
Wouldnt a $17k break fee p#$@ you off?
Seen some real nasty ones of late from people who fixed 2 - 3 years ago (and they are actually complaining about it after getting the benefit whilst the rates were rising ???).
Depending on the proportion of fixed loans in AUST, this puts a partial floor on many property prices.
Don't these somewhat contradict each other? If you have your loans with the same bank, you're effectively cross-collateralised anyway via the "all monies" clause, aren't you?
