This is the cost incurred when you make an additional payment (either a partial payment, or a payment that pays out your loan in full; including refinance) that exceeds the lender’s allowable amount (e.g. $10,000 per year) during the fixed rate period. Depending on your fixed interest rate and how long you have to go until your fixed term ends, it could come to a significant amount.
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You may assume that your lender uses their standard variable rate when figuring out your borrowing strength. This isn’t true. Instead, they’ll use an assessment rate to work out how much you can borrow.
You can’t always get the amount of money you want when you apply for a home loan. Your lender takes a lot of things into account when working out your borrowing power.
Most lenders look at your employment history when considering your home loan application. They want to see that you earn a stable income and you’ve been in the same job for a while. This may make it hard to get a loan if you’re in your probationary period.