Anz Break Fee Calculator

Breaking a fixed-term home loan before the fixed period ends can incur significant fees. Use this ANZ break fee calculator to estimate the cost of breaking your loan early. The calculator provides a quick estimate based on ANZ's current break fee structure.

What is a break fee?

A break fee is a penalty charge imposed by lenders when you break a fixed-term home loan before the fixed period ends. This fee compensates the lender for the lost interest they would have earned if the loan remained fixed.

Break fees are typically calculated as a percentage of the outstanding loan balance or as a fixed amount. The exact fee structure varies by lender and loan type.

How to calculate break fee

The basic formula for calculating a break fee is:

Break Fee = Loan Balance × Break Fee Rate

Where:

Loan Balance - The current amount you owe on your home loan
Break Fee Rate - The percentage fee charged by your lender (typically 1-3%)

For example, if you owe $300,000 and your lender charges a 2% break fee, the break fee would be:

$300,000 × 0.02 = $6,000

ANZ break fee details

ANZ Bank typically charges a break fee when you break a fixed-term home loan before the fixed period ends. The exact fee depends on several factors:

Loan term remaining
Loan type (investment or owner-occupied)
Loan product
Loan balance

ANZ's break fee structure is complex and varies by product. The calculator provides an estimate based on ANZ's general break fee rates.

Note: Actual break fees may differ from the calculator's estimate. Always check with ANZ or your lender for precise details.

Examples

Example 1: Owner-occupied loan

Loan balance: $400,000
Break fee rate: 2%
Break fee: $8,000

Example 2: Investment loan

Loan balance: $600,000
Break fee rate: 1.5%
Break fee: $9,000

These examples show how the break fee varies with different loan balances and rates.

FAQ

What is the ANZ break fee rate?: The break fee rate varies by ANZ loan product. The calculator uses a general estimate of 1-3%. For precise details, check with ANZ or your lender.
Can I avoid the break fee?: Some lenders offer break fee waivers or discounts for certain customers. Check with ANZ to see if you qualify.
Is the break fee tax deductible?: In Australia, break fees are generally not tax deductible as they are considered a cost of borrowing, not an expense of your business.
What happens if I can't pay the break fee?: If you can't pay the break fee, you may need to negotiate with ANZ or consider refinancing options. Some lenders may offer payment plans.