Wholesale gap × balance × years left

What does leaving the fixed rate cost?

Break cost uses the positive gap between the fixed rate and the wholesale rate. Cashback clawback is 100% in year one, 66% in year two, and 33% in year three, unless you choose a full clawback window.

Loan balance

What is still owed on the fixed loan you would repay early.

Fixed rate

The interest rate locked on that loan today.

Wholesale rate

A stand-in for what the bank could earn by lending the same money again today. This model charges a break cost only when your fixed rate is higher.

Years remaining

How long is left on the fixed period. A loan fixed for two more years uses 2 here.

Cashback received

Cash the bank paid you when the loan was drawn. Leave early and some or all of it can be clawed back.

Months since drawdown

How many months since the loan started. Clawback usually steps down as this number gets larger.

Clawback rule

Tiered asks for the whole cashback in the first year, 66% in the second, and 33% in the third. The other two choices claw the whole amount back until 24 or 36 months have passed.

Waiting on the first calculation