Couple lose home loan complaint in face of $50,000 break fee
A couple who fixed their home loan for five years in 2023 took their complaint to the Banking Ombudsman after claiming they were misled by their bank. They argued that staff had pressured them into the long-term deal, which they later regretted. The ombudsman’s final decision, released in December 2025, rejected their complaint.
The couple had previously fixed their loan for one-year terms in 2021 and 2022. In 2023, they chose a five-year fixed rate, later stating they felt pushed into the agreement. When they asked about breaking the term in 2024, the bank provided estimates of early repayment charges between $45,000 and $50,000.
The Banking Ombudsman examined the case and found no evidence of misleading behaviour or undue pressure from the bank. Documents showed the early repayment charges had been clearly outlined in the original loan agreement and in later variation letters. The ombudsman also noted that the average special five-year fixed rate in 2023, according to Reserve Bank data, ranged from 6.29% to 6.66%. In its December 2025 case note, the ombudsman confirmed the complaint would not be upheld. The decision rested on the bank’s proper disclosure of terms and the absence of any wrongdoing in its conduct.
The ombudsman’s ruling means the couple remains bound by the five-year fixed term. They will face the previously disclosed charges if they choose to break the loan early. The case note serves as a record of the decision, closing the matter for both parties.
