How does a Fixed Rate Home Loan work?

How does a fixed rate home loan work?

What is a fixed rate lock fee?

This is the fee to lock in an interest rate on your fixed loan. The rate is locked in for a period of up to 90 days from the date of application.

How do I lock in a rate on my fixed loan?

Tick the ‘fixed rate lock fee’ box on your loan application or advise a staff member.

How do I pay the fee?

The fee is added to the loan and disclosed in your offer and loan contract.

What happens if I do not lock the rate in at the time of application?

You can only lock the rate at the date of application. If your settlement takes longer than 90 days, the rate will no longer be locked and you will still have to pay the rate lock fee.

What happens if fixed rates go down?

The lower interest rate will be applied on the day of settlement but the fee is payable regardless of rate movements.

Can I lock the rate in when switching to a fixed rate product?

No. The rate lock option only applies to new loan applications.