Thinking about getting a fixed rate?
For anyone thinking about getting a fixed rate for either a purchase or refinance, you should be aware that the fixed rate that applies to your loan is the one on the day of settlement and not at the time of submitting the application nor at the time of formal approval.
The only way you can be sure
The only way you can be sure of getting the fixed rate that is currently advertised is by applying for a ‘Lock Rate’ feature. Whilst a couple of lenders don’t charge for this service, the over whelming majority do. The cost normally ranges from $500 to $1,000.
So if you’re considering getting a ‘fixed ‘loan, make sure you ask your Broker whether applying for the Lock Rate is an appropriate move for you. It may just save you money in the long run!