Waiving of fixed interest break costs

Would anybody know whether any of the banks would consider waiving the break cost fee for Fixed interest IO investment loans.
As an example one of my loans with westpac is 3.99 IO fixed for 2 years. Would the banks consider waiving the break cost fee in the current climate to either go to a new variable rate or a lower Fixed interest rate?

Has anyone heard of this being done, or being on the cards to adopt this change?

 

I don't think the would. But it wouldn't hurt to ask

 

I have heard of some credit unions waiving fixed rate break costs, but never the mainstream lenders.

 

Never heard of it

 

I called up St George last week with a similar request. Although it was to break and re-fix with their current rate. Unfortunately, break fee was not going to be waived.

 

I just called up CBA, and they said they couldn't do it "at the moment". So there could be some hope. If anyone hears of anything, please let us all know?

 

I know of a CBA customer that had a fixed P&I investment loan. Break fee was waived and switched to IO. This was offered in lieu of a repayment deferral but the individual did have to substantiate finanical hardship.

If you're struggling it seems there is some case by case flexibility.

 

Contacting CBA next week - if they don't want to waive the break fee, that's fine, will move to ANZ, get the refinance switch money that would easily cover the break fee and ANZ fixed rates are lower right now anyway. If CBA waive the break fee, will stay with them. Let's see what they say when they get pushed to the wall...

 

My guess is that they won't budge, but worth a try.

 

Depends what the break fee will be. My break fee was $8000 and I had 8 months left. Refinancing to another bank and getting $3-4k rebate was still not worth in my case.

 

I checked one of my loans. $23,000 break fee. I'd rather keep the loan.

 

But also factor in any tax deductions and interest savings until the end of the fixed term

 

Do you think deals like these could put pressure on the banks to re-assess their break fees?

ANZ 2.49% Investment Loan Fixed 2 Years (P&I) & 2.69% (Interest Only) + $4,000.00 Refinance Cashback + 0.3% Broker Rebate

ANZ 2.49% Home Loan Investor Fixed 2 Years + $4000 Refinance + 0.3% Bundle Rebate

 

no

 

why not?

 

Sorry for hijacking :-

@Peter_Tersteeg how's credit union's loan serviceability calculator? i haven't heard much about them....

 

Normally awful?

 

Six weeks ago it was comfortably under 4k, with 10 months left and loan size of 280k.. One way to find out..