What is a rate lock?

A rate lock is an extra option that allows fixed rate home loan applicants the ability to lock in the advertised fixed rate for a period of 90 days. Without a rate lock, Australian Mutual Bank may vary the fixed rate at any time up until loan funding if the advertised rate changes. However, if you have made a rate lock application and we have accepted your application, we will not increase the fixed rate between the date of your Offer & Loan Contract and the funding provided that funding occurs within 90 days of the date you applied for the rate lock.

How do I apply for a rate lock?

You must advise Australian Mutual Bank in writing or via email that you wish to apply for a rate lock. This can be done at any time prior to the date we contract your loan.

What if I choose not to go ahead with the loan after I agree to pay the rate lock fee?

The rate lock fee is charged at settlement of the loan, therefore if your loan does not proceed to settlement, you will not be charged the fee

How is the rate lock charged?

The rate lock fee is contained within your offer and Loan Contract as a loan fee and charged at settlement.

How much is the rate lock fee?

The rate lock fee is currently $500 regardless of the amount borrowed.

What happens if fixed rates go down?

The lower applicable advertised rate will be applied on settlement, however the fee will still be payable.

Am I able to rate lock an Australian Mutual Bank fixed housing loan that’s coming up for renewal?

The rate lock option is not available for fixed loan renewals.

What if I don’t wish to apply for a rate lock?

If you don’t wish to apply for a rate lock, the fixed rate applicable to your loan will be the advertised rate at the time in which your contracts are issued. Australian Mutual Bank also reserves the right to vary this offer between when the contracts are issued and settlement in circumstances not limited to the following; there being a significant time that has elapsed between the two dates, a significant shift in interest rates, or a variation to the loan type or term.