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2023-12-22 2:05 pm

Home loan fixed rate lock

Find out how to lock in a fixed rate while your Bank Australia home loan settles, and learn whether it’s right for you.

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With our fixed rate lock you can apply for a fixed interest rate on your home loan and lock in the rate while your home loan settles. Is it right for you? Read on to see what’s involved.

What is it?

When you apply for our Basic, Premium or Clean Energy home loans, you can apply to lock in your fixed rate at the same time. This locks in the current fixed interest rate for your preferred fixed rate period of 1 to 5 years. 

What’s in it for you?

Let’s start with what happens if you choose not to lock in the rate. In short, the rate may go up between the day you apply and the day your home loan settles. So by locking in your rate up front (up to a maximum of 90 days), you know exactly what your rate will be for the fixed rate period of your loan.

What’s to love
  • If our fixed rates increase anytime in the settlement period – the lower locked-in rate applies.
  • And if we drop our rates before your settlement day – the lower locked-in rate also applies. Win-win. 

How much does it cost?

0.10% of the total fixed loan amount for approved home loan applications (minimum fee $50).

Important information.
Bank Australia will apply the Rate Lock fixed rate as at the loan settlement date providing it is within the 90 days from rate lock acceptance, otherwise the available fixed rate on that day will apply.

Who is eligible?

Anyone applying for a fixed rate on our Basic Home Loan, Premium Home Loan Package or Clean Energy Home Loan.

When does rate lock kick in?

We apply the rate lock once your rate lock application has been accepted.  The fixed rate on that day is locked in for a maximum of 90 days.

Keen to learn more?

Explore the range of Bank Australia home loans or see support for first time home buyers and refinancers.

Frequently asked questions

What is the rate lock fee?

The rate lock fee applicable is 0.10% of the total fixed loan amount or $50, whichever is higher.

For example the rate lock fee for a:

  • $300,000 Basic Home Loan/Premium Package with a locked fixed rate will be $300.
  • $30,000 Basic Home Loan/Premium Package with a locked fixed rate lock will be $50.
  • split loan application of $250,000 variable and $250,000 locked fixed rate lock will be $250.
  • $200,000 Basic Home Loan/Premium Package with a locked fixed rate which has capitalised lenders mortgage insurance premium of $4,500 will be $204.50.

What if I’m applying for multiple fixed loans?

The rate lock fee applies to each fixed loan split where a rate lock application exists. For example, if you were to have three home loan applications split into $200,000 variable, $100,000 fixed (no rate lock) and $200,000 fixed (rate lock applies), the rate lock fee is $200.

When and how do I pay the Rate Lock Fee?

We display the rate lock fee on your loan contracts which is deducted from the base loan amount at settlement, similar to how you pay for the establishment fee.

How long is the lock in period?

The rate lock period is for 90 days. The fixed rate lock rate will be locked in for a maximum of 90 days from the time this rate lock application is accepted (“lock in period”). If the loan is settled or entered into after the lock in period, the available rate for the nominated fixed period as at funding will apply.  

What if the loan isn’t settled in the 90 day lock in period?   Can I lock the rate in again?

Yes, you can by applying for rate lock again. You will also need to pay the rate lock fee again.

How do I apply for rate lock?

You can complete a fixed rate lock application form and return it to us. You can apply anytime from your loan application up until unconditional approval.

Need help?

Send us a secure message via the app or internet banking

Or call us

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