You have applied for a Fixed Rate home or investment loan as it presents as a suitable option for your needs. You complete and submit the Application hoping that the rate you have applied for won’t change by the time it takes to settle your loan. Because our economic conditions are constantly changing, lenders rates are constantly changing also.
A Rate Lock can help you protect the interest rate you applied for when you submitted your application.
Most lenders charge a Rate Lock Fee, which may be a percentage of the loan amount whilst others might charge a flat fee, it all depends on the lender. While this can be a substantial sum, certain lenders may not charge it or will even waive it in some cases.
Our final tip: Make sure you note the expiry date of your rate lock, which usually lasts 90 days – If settlement still hasn’t taken place when your rate lock expires, it will need to be renewed with an additional fee.
If opting for a fixed rate home loan, it is worth chatting with our dedicated team so that you can choose the right lender and Rate Lock option for you.