All, Anyone please shed light how is break cost calculated for fixed interest loan? I understand Banks use Bank Bill Swap Rate (BBSR) to calculate your early repayment cost. Took 3 year fixed IO PPOR loan (500K).. with 4.74% .... 2 year left in fixed period. product does not fit my purpose so cutting my loses. I am surprise to see my break cost increased by 1k in last week without changing anything in interest. Last week it was $4850 and today $5800 not including other charges (discharge fees $500 + legal cost $275) Any tips to reduce break cost. repayment of 20K annual limit in Fixed IO hopefully reduce this slightly. Any other Idea? Trying to recoup loses using St G Rebate 2k plus reduce interest of 4.19% . I guess I could recoup ard 5K in a year but still a loss of 2 grand. Thanks Guys.