How much do banks charge to break a mortgage ?
| # | Post |
|---|---|
| 1 | If i was to pay a mortgage off i mean ? azzab54 - 2021-02-07 17:34:00 |
| 2 | You have to ask them. It all depends on the interest rate you are on, how much is outstanding and how long to go on your current term. sparkychap - 2021-02-07 17:39:00 |
| 3 | OK.That changes everyday,so to be accurate they could only tell you at the actual time of being notified that the mortgage is to be paid off,right? Has anyone done this and had to pay the break fee,and how much was the charge ? azzab54 - 2021-02-07 17:43:00 |
| 4 | You have to ask them. It all depends on the interest rate you are on, how much is outstanding and how long to go on your current term. sparkychap - 2021-02-07 17:48:00 |
| 5 | Plus if you received any cash incentive, you may have to pay a prorata amount back (aka "clawback") sparkychap - 2021-02-07 17:57:00 |
| 6 | Yes we did this 20 years ago, we paid approx 1k but stopped paying the mortgage for another 12 years so was worth while. ASB was ours, Each to their own. msigg - 2021-02-07 17:59:00 |
| 7 | azzab54 wrote:
Correct. They will give you a quote to break it on the day. Every single case will be different (how much owing, interest rate and how long left on fixed term) so totally irrelevant what others have paid. We were quoted approximately $800 to break ours - we are building another investment property and are going to consolidate lending. wachael1 - 2021-02-07 18:13:00 |
| 8 | azzab54 wrote:
Paying off the mortgage isn't the same as having no mortgage. You could pay off the loan and retain the mortgage. johnston - 2021-02-07 18:47:00 |
| 9 | It will be worked out, taking account of the lost interest payments they would have got, can be expensive, if a lot of the term left. Edited by gpg58 at 8:37 pm, Sun 7 Feb gpg58 - 2021-02-07 20:25:00 |
| 10 | gpg58 wrote:
If you pay off the loan but don't discharge the mortgage its a lot easier and cheaper to get another loan for other properties. loud_37 - 2021-02-07 21:55:00 |
| 11 | https://www.interest.co.nz/calculators/mortgage-break-fee-es Calculator. lythande1 - 2021-02-08 07:43:00 |
| 12 | sparkychap wrote:
...and if the loan was arranged by a broker and you repaying within 27 months you are liable for their commission clawback too jeffqv - 2021-02-08 09:45:00 |
| 13 | jeffqv wrote: Did you see the article recently where a borrower won their case against the broker because the brokers engagement contract was very vague on this scenario? It said something like "you may have to pay a fee". They argued that they would have expected (say) $ 25 r so, not the thousands demanded. ETA here it is: https://www.stuff.co.nz/business/300196122/mortgage-adviser- Edited by sparkychap at 10:11 am, Mon 8 Feb sparkychap - 2021-02-08 09:59:00 |
| 14 | sparkychap wrote:
Ouch. sw20 - 2021-02-08 11:02:00 |
| 15 | You have to ask THEM. amasser - 2021-02-08 11:04:00 |
| 16 | azzab54 wrote:
I broke my mortgage about 15 years ago.. If I recall correctly at the time the break fee was around $300, BUT I saved $19,000 in interest ( was paying 6%, had 20 years to run) Ask your bank. Whatever it is, it won't be anywhere near the amount of interest you'll pay by having a mortgage. And I cleared it fully... was quite upset with the bank at the time, so decided I would NEVER get another mortgage with them! Edited by hazelnut2 at 5:14 pm, Mon 8 Feb hazelnut2 - 2021-02-08 17:11:00 |
| 17 | hazelnut2 wrote:
the break fee is only for the portion of interest for the remaining fixed term not the whole 20yrs. Edited by loud_37 at 7:53 pm, Mon 8 Feb loud_37 - 2021-02-08 19:52:00 |
| 18 | azzab54 wrote:
Do you want to pay of the mortgage with cash? If so you might want to think about what else you could do with the money. Interest rates ore so low at the moment and there are surly more lucritive ways to use the money. curlcrown - 2021-02-08 22:19:00 |
| 19 | loud_37 wrote:
The remaining fixed term WAS 20 years (of a 30 year mortgage). Did I explain it incorrectly? hazelnut2 - 2021-02-09 09:13:00 |
| 20 | curlcrown wrote:
Yes, there might well be, but the satisfaction of completely OWNING one's piece of the planet can't be underestimated. hazelnut2 - 2021-02-09 09:15:00 |
| 21 | hazelnut2 wrote: I very much doubt that you had a fixed interest rate for the length of the loan..... sparkychap - 2021-02-09 09:54:00 |
| 22 | This message was deleted. kittycatkin - 2021-02-09 13:25:00 |
| 23 | This message was deleted. kittycatkin - 2021-02-09 16:41:00 |
| 24 | This message was deleted. kittycatkin - 2021-02-09 16:46:00 |
| 25 | hazelnut2 wrote:
WOW 30 year fixed term, the longest i've seen was 5 years. loud_37 - 2021-02-09 19:07:00 |
| 26 | In my experience a couple of years ago, Westpac Bank were a bit shy about giving a breaking fee figure just on a general enquiry... "what sort of fee would I be up for if we paid off our mortgage in a couple of months time" ?? They wanted a firm proposal with dates etc... There are all sort of factor that they take into account if they will even change a fee at all.. It is one thing to pay off your mortgage because your granny has died and you have come into a bit of money, as opposed to clearing this mortgage so you can run off to another bank and get a mortgage from them instead !! onl_148 - 2021-02-11 14:47:00 |
| 27 | This message was deleted. kittycatkin - 2021-02-11 14:54:00 |
| 28 | kittycatkin wrote:
Because the bank is a business and they want to keep your business. jonnythecat - 2021-02-11 16:29:00 |
