changing from variable to fixed after formal approval

If you have had your loan application formally approved for a variable rate loan, what is the process for changing to a fixed rate before settlement? Will the loan go through another assessment and approval by the lender, or is it possible just to toggle the variable vs fixed aspect of the loan?

I don't want to do anything to jeopardise the 'formally approved' status, so I'm inclined just to go ahead with the variable rate, but my broker is keen to take me through the options. My broker mentioned that I can go with variable now, but at a later time (post settlement) I can switch to fixed - is that an easy process?

PS. Again, thanks to all those who have responded to my previous questions. I feel like I'm taking this forum through my entire loan journey!

 

Easiest way with most banks is to simply switch it over after settlement. Changing it now will mean a re-approval and new loan offer documents have to be issued. Some lenders will charge extra for the new loan docs.

 

We settle nearly all our loans variable, and fix post settlement. Saves a hefty rate lock fee.

 

Are there consequences to going fixed? Such as limited extra repayments? Are you planning to save aggressively to pay down the loan?

also break fees if you refi while fixed, and you dont have an offset. Have you been convinced that you should have an offset, in which case you might have to change lenders?

you are asking the wrong questions imho because you are not looking at long term strategy.

 

Seems easier, but what do you do if the fixed rates increase prior to settlement? A borrower may have a reasonable claim for compensation if rates move the wrong way.

There's also several lenders that don't charge rate lock fees.

 

I take notes Most would rather not pay the $750 fee - when looking at 2 yrs fixed, it makes the relative rate significantly higher on the average loan size I do.

They understand the risk - potential rate change vs definite $750 fee (with many lenders). If it's a choice of not paying the fee and having up to 3+ months waiting for settlement with crossed fingers, compared to not paying the fee, settling variable and making the decision afterward, most prefer to go that way.