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Member since 12 Jan 2007
Member from Taipa
With the drop in interest rates - and supposedly, more to come I am looking at breaking a fixed term mortgage with just over three years to run at 8.99%
Does anyone know a simple way to work out the penalty to break this?? Also I wonder whether each bank has a different schedule on it or not?
With the economy being what it is - maybe the Govt will intervene and suggest they only charge 50% of the penalities - that would be marvellous wouldnt it?
Member since 26 Nov 2006
Member from Dobson
Make a call to the bank and ask what their charges will be. I heard an economist on the radio and he said to be very careful before you break a fixed term mortgage as you may end up paying more in charges than you would in leaving it to run it's term.
Member since 23 Apr 2008
Member from Mt Wellington
Do speak to a mortgage manager at your bank as he/she can work out both the cost of breaking your mortgage, and what you would gain by re-financing at a lower rate for the remaining term. By comparing both figures you can then make the decision.
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