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What is Rate Lock and how do I apply?

With the Rate Lock1 feature, you can lock in the current fixed interest rate at the time of your loan approval. This way, for a fee, you are protected from the possibility of rising interest rates. If the current rate falls below your 'locked in’ rate on your settlement date, you'll be given the lower rate. Rate Lock will hold the current fixed rate for up to 90 days after you have locked in the rate for a fee of 0.15% of the loan amount (minimum fee amount $500, maximum charge is capped at $1,000 for loans up to $2M, and 0.15% of the loan amount for loan above $2M). Once approved, you will need to pay the fixed rate - lock-in fee at settlement.

To apply for the Rate Lock feature, you can speak directly with your Home Finance Manager or Broker.

The Detail

1Rate Lock: Bank of Melbourne will apply the fixed rate that is available at the loan settlement date or the date the fixed rate period commences, unless the customer locks a fixed rate in on the loan using our Rate Lock feature. The fixed rate - lock-in fee is 0.15% of the loan amount or $500, whichever is higher, capped at $1000 for loans up to $2 mil. For loans above $2mil, the fixed rate - lock-in fee is 0.15% of the loan amount. At the end of the fixed rate period the interest rate will convert to the applicable variable interest rate.

Fixed rate home loan: Bank of Melbourne will apply the fixed rate that is available at the loan settlement date or the date the fixed rate period commences. At the end of the fixed rate period the interest rate will convert to the applicable variable home loan interest rate.