May 14, 2020 Campbell Gordon

What is a fixed rate lock?

When taking out a fixed rate loan, it is important to understand that the fixed interest rate is set on the day of drawdown / settlement, not necessarily the advertised rate when you apply for the loan.

In some cases, the fixed interest rate offered by the lender may change between application and settlement. Whilst the fixed rate may not change between application and settlement, there are times when it will increase and other times where it will decrease.

By entering into a fixed rate lock facility, you remove the risk of the fixed rate increasing, provided your loan settles within 90 days from taking out the fixed rate lock.

Whilst there are some lenders who do not charge a fixed rate lock fee, most lenders charge a minimum $500 or 0.15% of the loan amount, but some charge higher fees than this.

Whenever you look to take out a fixed rate loan, you should always consider whether a fixed rate lock is a appropriate for your circumstances.

We are more than happy to discuss your options. To get in touch, simply email us at or call 1300 955 759 — together we’ll uncover your best option.



Invest wisely, borrow carefully, and sleep comfortably.

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Campbell Gordon

Campbell has more than 15 years’ professional experience in finance, property and accounting. His extensive experience in the property, development, agribusiness and finance sectors, gives Campbell credibility with lenders, where he remains current with the changing appetites of lenders and the changing financial metrics used by them to assess lending proposals. Campbell is dedicated to providing personalised service to ensure tailored solutions for every client.


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