Every lender has their own terms and conditions, and this is intended only as a general guide to understanding this topic. Contact us to discuss your individual circumstances.
If you have selected a Fixed Rate home loan, the fixed rate that will apply will be the advertised rate on the date of settlement.
Many lenders have an option to lock in the rate, often with a fee payable for exercising this option. Some of my panel lenders do have free and/or automatic rate lock-ins, which, in a moving & changing fixed rate environment may be an important consideration when selecting a suitable loan and lender for you.
I can discuss with you the impact & costs that are involved in paying a Lock-In fee, and compare those to potential costs to you if Fixed Rates were to be increased prior to your loan settlement. We will also need to consider the time you have between loan application and settlement and whether the fixed interest rate market is on an upward, steady or downward cycle.
If you do choose to lock in the rate, and the fixed rates fall again by settlement day resulting in the standard fixed rate being lower than your locked in rate, most lenders will enable you to receive the lower of the two rates.
We send out a regular fixed rate update email. Call or email me if you wish to receive this.