If you have a home loan on a fixed interest rate and decide to go on to a lower rate, repay the loan off early or make a lump sum payment, you may have to break your current fixed interest rate agreement.  Before you decide to do this, it’s important to think about the financial implications including something that’s called an Early Repayment Adjustment or ERA.

This is an area that can get complicated, so the following information will explain what an ERA is, as well as take you through the pros and cons of breaking a fixed rate agreement and whether it’s the right option for you.

• What is an ERA and why is it charged?
• When does an ERA apply?
• Can you avoid an ERA?
• Do all banks charge an ERA?
• How is the ERA calculated?
• Can I calculate my own ERA?
• Should I break my fixed rate loan?
• Your new interest rate options
• How to get an ERA quote