Why Do Lenders Charge Early Repayment Fees?
Lenders earn interest over the loan term, so paying off early reduces their profit. Some charge penalty fees to recover lost earnings.
Ways to Avoid Early Repayment Fees
๐ 1. Choose a Loan with No Early Exit Fees
โ Some lenders donโt charge penalties for extra repayments.
๐ 2. Make Extra Repayments Gradually
โ Paying small amounts over time may avoid triggering a lump-sum fee.
๐ 3. Check Your Loan Agreement
โ Fixed-rate loans are more likely to have penalties than variable-rate loans.
๐ก Compare loans with no early exit fees at FinanceTheRide.com.au! ๐๐จ
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DISCLAIMER
The information provided on this website is general in nature only and has been prepared without considering your financial needs, circumstances and objectives and should NOT be construed as financial, taxation or legal advice. For more information, get in touch with our experienced partner brokers today.