Lock In

U

ugotadollar4me

Can a bank lock in a fixed interest rate for you
My lawyer is away for a week and I asked my bank to lock in the fixed rate they offered me and they said they can not lock in a rate, they said once my lawyer is back from holiday and they have the documents then they will sign off on it and what ever the rate is on the day is the rate I will get
Does this sound correct or is this just a bodgy answer from my bank, surely if they offer me a fixed rate then this will still be available next week?
 
ugotadollar4me said:
....they said once my lawyer is back from holiday and they have the documents then they will sign off on it and what ever the rate is on the day is the rate I will get
Does this sound correct or is this just a bodgy answer from my bank, surely if they offer me a fixed rate then this will still be available next week?
Click to expand...

Sounds dodgy. I've never had a lawyer involved in locking in either a fixed rate or an IO period. I've always had those conversations directly with the lender.
 
Your lawyer is not responsible for implementing your lending requirements. They're not even legally qualified to do this.

This is the responsiblity of either the bank or the broker. If you're dealing directly with the bank, tell them to do their job.
 
ugotadollar4me said:
Can a bank lock in a fixed interest rate for you
My lawyer is away for a week and I asked my bank to lock in the fixed rate they offered me and they said they can not lock in a rate, they said once my lawyer is back from holiday and they have the documents then they will sign off on it and what ever the rate is on the day is the rate I will get
Does this sound correct or is this just a bodgy answer from my bank, surely if they offer me a fixed rate then this will still be available next week?
Click to expand...

Hiya

Depends a little on the lender. Some lenders dont have a fixed rate lock in product, and u get what u get on settlement day.

Some will lock ur rate for free

Some will lock your rate for a few hundred and a bit dollars

In the current rate climate, rate lock isnt requested as much as in times of upward movement

ta
rolf
 
Propertunity said:
Sounds dodgy. I've never had a lawyer involved in locking in either a fixed rate or an IO period. I've always had those conversations directly with the lender.
Click to expand...


You might want to reread my post,
My lawyer is away for a week, trying to get my lender to lock the fixed rate for me not my lawyer, just waiting on my lawyer to get back from holiday so that he can take a look over the loan documents before signing, but in the mean time I wanted my bank to lock the fixed rate they offered me but they said no.
 
The main thing you need to look at it in a fixed-rate loan document is the penalty payout in case you refinance your fixed loan before the expiry of the fixed period. Everything else will be the same as a normal variable loan. As long as you understand that you don't really need a lawyer to look over it.
 
I've always been offered rate lock at a cost of a couple of hundred or so... which usually makes the rate lock not worth it. I'm surprised they said they 'couldn't' do it, but in this environment it wouldn't be worth your while anyway imo. My rate actually went down a fraction of a percent due to the delay between request and implementation.
 
exsyd said:
I've always been offered rate lock at a cost of a couple of hundred or so... which usually makes the rate lock not worth it. I'm surprised they said they 'couldn't' do it, but in this environment it wouldn't be worth your while anyway imo. My rate actually went down a fraction of a percent due to the delay between request and implementation.
Click to expand...

meh........

depends

at times where bond rates are spikey, and you have a 500 k lend, and the the rate can jump 50 pts between settlement and approval, that 700 bucks looks REAL good on a five year fixed................


I do agree with u though that on the surface the current environment, the immediate future for fixed rates looks flat.
 
Yeah, fine, I should have said not worth it FOR ME. I never fix for more than three years anyway, and the prices they've quoted when I've fixed in the past were just ridiculous compared to my personal risk assessment. My point was there's no sense in rate lock for the sake of rate lock unless you weigh up cost/benefit.
 
tess85 said:
All this talk of a lawyer makes it sound like you have just bought the property and you are still in the settlement period?
Click to expand...



Haha not at all, redoing a loan but the doc's have been altered by the bank from the last docs I signed - everytime I sign docs with a bank I look over them and then I have my lawyer look over them to cover my a$$
you will be surprised on the little extras banks add in to your loan docs that were not there before, the slightest word change could cost you some coin later on
 
You must log in or register to reply here.

Similar threads

R
Some problem with our Loan with AMP?
Replies
5
Views
2K
NPB
N
A
What happens to locked in rates when interest rates fall?
Replies
15
Views
3K
aussieB
A
A
Who is offering the lowest SVR ?
Replies
19
Views
3K
Terry_w
Terry_w
L
Is this a good deal ?
Replies
11
Views
2K
Rolf Latham
R
B
CBA Variable Rate
4 5 6
Replies
102
Views
16K
Pele
P
Back
Top