Break Costs
The fee for exiting a fixed loan early. Can reach five figures.
What is Break Costs?
Break costs are the fees charged when you exit a fixed-rate loan early — by refinancing, selling, or paying out the loan. They're calculated based on the difference between your fixed rate and current market rates, multiplied by the remaining fixed period.
Why it matters for you
Break costs can range from $500 to $50,000+ depending on loan size and rate movement. Always get a break cost quote from your lender before refinancing a fixed loan. Sometimes waiting until the fixed period expires saves more than the new rate offers.