What fees will apply if I pay my loan down faster or early?
We wanted to congratulate ‘U’ for paying off your loan faster! ‘U’-Rock!
Here’s what you will need to know when it comes to fees:
- If you hold a variable rate UHomeLoan then there are no fees if your home loan is paid out early;
- If you are paying out a fixed rate UHomeLoan, there may be a fixed rate break cost associated (also known as the ‘Lender’s Early Repayment Loss’). The fixed rate break cost may be charged if the fixed rate loan is partially or wholly paid out before the completion of the fixed rate interest period. Currently, you can pay up to $20,000 over the fixed term without incurring any fixed rate break cost. However, if you are wishing to pay more we would recommend you giving us a call on 13 30 80. This is because fixed rate break costs may vary and there is no way of producing an upfront figure, however, we can produce an exact quote of how much it will cost at your current stage in the home loan journey if you are to call us.
- For borrowers who have paid out the loan in full, please give us a call on 13 30 80 to arrange a Discharge Authority form to be sent out. This form is required to remove the lender from the property title. Once we are ready to discharge your loan, you may receive a payout from our settlement agent detailing any final balance (which may include any relevant fees such as government fees) in order to finalise the release.