Break Cost Waiver After 3 Years
We are pleased to introduce a new feature that increases the flexibility of our 4-year and 5-year fixed rate home loans regarding the break cost fee. For all fixed rate loans approved after 2 June 2025, your clients will no longer be charged a break cost fee if they:
- Switch to a variable rate product, or
- Refinance to another lender,
after holding their fixed rate loan for 3 years or more.
This means your clients can enjoy the certainty and peace of mind that comes from securing a great fixed rate while also having the flexibility to make changes after three years—without incurring a potentially significant break cost. This update demonstrates our commitment to providing greater value and flexibility to both you and your clients, enabling confident planning while allowing the option to adapt as their needs evolve.
Please refer to our Break Fee Fact Sheet for details how the costs are calculated and when they’re charged.
Servicing Buffering Bonus Benefit
Borrowers who apply for one of our 5-year fixed rate home loans after 2 June 2025, will enjoy the bonus benefit from the absence of a servicing buffer. This means they have the flexibility to switch products after three years without a break cost fee being charged or the servicing buffer being applied at application on our 5-year fixed rate home loans.
Typically, for most fixed rate home loans, a servicing buffer is applied by stress-testing the borrower’s ability to repay the loan at a higher rate than the actual fixed rate. This process ensures that borrowers can still meet their repayments if interest rates rise after the fixed term ends. We currently apply the servicing buffer for our 1, 2, 3, and 4-year fixed rate home loans.
