Rate Lock

How we calculate the Rate Lock fee

The Rate Lock fee is calculated as 0.15% of the approved limit, set out in the loan contract and rounded to the nearest $10. The fixed rate period does not affect the fee. 

Example 1: 0.15% of 150,000 (approved limit) equals $225. Therefore, the Rate Lock fee applicable is $230. 

Example 2: 0.15% of $163,000 (approved limit) equals $244.50. Therefore, the Rate Lock fee applicable is $240.

When is the Rate Lock fee payable?

The Rate Lock fee is payable once all the borrowers’ sign and return the Rate Lock agreement form or once all the borrowers’ verbal consents are captured.

In circumstances where not all parties to the lending application have signed the Rate Lock application form, you will have 7 days to obtain the consent of the remaining borrowers to ensure the Rate Lock application form remains valid. If not, a new Rate Lock application form will need to be completed. The Rate Lock fee will be charged to the loan account at loan drawdown.

Things to remember

• The applicable interest rate on the day will be locked in for 90 days once the Rate Lock form is completed by all borrowers and received by NAB or when verbal consent(s) have been captured. 
• Borrowers can cancel the Rate Lock application before drawdown and/or if the loan does not proceed to settlement. However, once the Rate Lock fee becomes payable it is non-refundable and will be debited from the nominated account. 
• The Rate Lock fee will not be charged if NAB does not approve the loan.

When is a new Rate Lock application required?

A new Rate Lock application is available for customers seeking to enable a further 90 days of Rate Lock if:

• A new loan application is submitted.
• The Rate Lock period (90 days) expires before drawdown, and you are seeking to purchase a new Rate Lock. The interest rate will be locked based on the new Rate Lock agreement date.