In relation to the Australian securitisation market, exit/
prepayment fees are charges that may be payable by a
borrower to a lender if the borrower repays a loan early. These fees are typically used to compensate the lender for the loss of interest income that would have been earned if the loan had been repaid on schedule. The amount of the exit/prepayment fee will vary depending on the terms of the loan agreement, but it is typically expressed as a percentage of the outstanding
principal balance of the loan.