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What's a break fee, and do I have one?
A break fee (or early repayment fee) is what some lenders charge when a loan is paid off before the end of its term, which is what happens when a refinance settles. Many NZ car loans charge little or nothing; the law requires the fee to reflect the lender's actual loss, not act as a penalty.
By Leverage Finance · Updated 17 July 2026
Whether you have one is written in your loan contract, and the definitive answer is one phone call away: ask your current lender for your payout figure. They must tell you, the figure includes any break fee, and asking doesn't change or flag your loan.
Any break fee belongs in the switching maths. The new loan has to be better after it, not before. Our break fees guide covers how to find yours and how to weigh it.
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