Break fees

When it comes to home loans in Australia non-bank lenders are the worst offenders with early repayment penalties. In order to keep their comparison rate competitive with the banks, many such lenders loa costs onto the back of a home loan if you leave, as opposed to at the front where they are caught by the calculation. We found out with our morgage through a non-bank that its so-called deferred establishment fee is 2 per cent of your initial loan amount if you pay out the loan in the first two years and 1.5 per cent in the third year. After this there should be no penalty. But not so with our lender.