Mortgage Break Fee Calculator
Estimate early repayment costs for breaking your fixed-rate mortgage
What is a break fee?
When you break a fixed-rate mortgage early (by refinancing, selling, or paying off), banks charge a fee to cover their loss of interest. This is also called an "early repayment cost" or "prepayment penalty."
When you break a fixed-rate mortgage early (by refinancing, selling, or paying off), banks charge a fee to cover their loss of interest. This is also called an "early repayment cost" or "prepayment penalty."
Estimated Break Fee
$0
Interest Rate Difference
0.00%
Economic Cost to Bank
$0
Bank's loss of interest income over remaining term
Important: This is an estimate only. Actual break fees vary by bank and their specific calculation methods. Some banks may charge an administrative fee on top. Always request an exact quote from your lender before making any decisions.
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Disclaimer: Break fee calculations are complex and vary significantly between lenders. Each bank uses its own formula, and may include wholesale rate adjustments, administrative fees, and other factors. This calculator provides a simplified estimate based on interest rate differentials. Always obtain an official break fee quote from your bank before proceeding with refinancing or early repayment.
When Do Break Fees Apply?
- Refinancing to another bank during fixed term
- Selling your property and paying off mortgage early
- Making large lump sum payments above your allowed limit
- Switching from fixed to floating rate early
Good news: Most NZ banks allow 5-20% extra repayments per year without break fees. Check your mortgage terms for your specific allowance.