Fixed Interest Rate Lock

What is Rate Lock?

Rate lock is a binding agreement between a lender and borrower to lock in a fixed interest rate for a specific period of time at the lender’s current advertised rate. You can choose to lock in the entirety or a portion of your loan/s.

Why choose Rate Lock?

Fixed interest rates are subject to change without notice and may change between the time you apply for your loan and the date it settles. If you are concerned about the rate rising and seek the assurance of knowing exactly what your repayments will be each month, then rate lock may be for you.

Rate Lock varies between lenders but is often valid for up to 90 days. It can be added to your application at anytime prior to the loan being funded with most lenders. Be aware that some lenders require you to make the decision to rate lock upfront.

Does rate lock incur a fee?

Fees vary greatly between lenders from no fee at all, to a once-off fee (eg. $750), to others charging a percentage of the amount borrowed (eg. 0.15%). If interest rates decrease after you pay the rate lock fee but before settlement, you are still eligible to take advantage of the lower rate but will forfeit the rate lock fee already paid.

How do I lock in my rate?

Call NFC mortgage brokers today.