Definitions for "Break costs"
Usually applied to fixed loans, the break costs are the costs incurred when a loan is paid off early.
Charges for the breaking a fixed rate, this occurs when a borrower wishes to pay out the loan before the fixed term has expired.
Relates to the penalty fees charged when a borrower terminates a fixed-rate loan contract before the expiry of the fixed-rate period.
Where money is borrowed for a particular period and is repaid early, break costs may arise.