How long for bank to drawdown on fixed rate loan?

Discussion in 'Loans & Mortgage Brokers' started by grk349, 6th Jun, 2018.

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  1. grk349

    grk349 Well-Known Member

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    Hi all,

    Does anybody know how how long it takes for the bank to drawdown on fixed rate loan?

    I'm thinking of calling the bank and fixing today but the terms say that until the fixed rate is drawn down, the rate won't be locked in (unless I pay $750).

    What happens if in the intervening time they raise their fixed rates. Will I be locked into that higher rate?

    Many Thanks
     
    grk349, 6th Jun, 2018
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    What do you mean by 'draw down'?

    If you mean switch products to a fixed loan then they will send you a variation form to sign and you send that back, they process it and then fix it. Probably allow up to 10 days after sending back, but it should be quicker.

    If you haven't paid the rate lock fee, if rates jump before they fix it, you will get the higher rate.
     
    Terry_w, 6th Jun, 2018
    #2
  3. grk349

    grk349 Well-Known Member

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    Thanks
     
    grk349, 6th Jun, 2018
    #3
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  4. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Depends on the lender - some work off the day you call them and some work off the day the request is processed. Which lender is it?
     
    Shahin_Afarin, 6th Jun, 2018
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    Jess Peletier likes this.
  5. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    CBA are really quick - no additional signing after the initial form. Others are painful and need a variation form to be signed after the request.
     
    Jess Peletier, 6th Jun, 2018
    #5
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    id guess cba

    that 750 lock in sounds cba ish

    ta
    rolf
     
    Rolf Latham, 6th Jun, 2018
    #6
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  7. grk349

    grk349 Well-Known Member

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    ANZ

    was thinking that with the slight turnaround in GDP that they might pull the lower rates
     
    grk349, 7th Jun, 2018
    #7
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