Breaking a fixed loan, possible? This is how we did it.
Joel and Sarah are a young couple with a young family who, did well to purchase their family home in a coastal town, and their first investment property interstate. Being a young family, cash flow can get tight so they completed our Online Home Loan Comparison Report to see if they could get a better deal on both their home and investment loan. One of the issues we faced was that both their current loans were fixed and would incur ‘break cost’ if they exited these loans prior to the expiration of the fixed period. We were able to estimate their break cost and calculate if breaking their current fixed loans would benefit them financially. In this case we found there were massive savings (over $1000 in interest per month) for them to break their current loans and re-finance with a new lender. We structured their loans appropriately so they could continue to pay over and above the minimum repayments without being penalised. With their new re-financed loan in place we foresee that Joel and Sarah will now own their family home far sooner than expected.
