What is rate lock fee?
A rate lock fee is a one-off charge (commonly $395-$795) you can pay during loan approval to lock in today's fixed rate for 60-90 days while the loan is processed, protecting against fixed-rate rises before settlement.
A rate lock is an optional service offered with fixed-rate loans. You pay a one-off fee — typically $395-$795 depending on lender and loan size — and the lender guarantees the fixed rate quoted at application will be honoured at settlement, even if fixed rates rise during the 60-90 day processing window.
Rate lock is most useful when fixed rates are rising and your application is mid-process. A 0.25% rate rise on a $500,000 fixed loan over 3 years costs roughly $3,500 in extra interest — easily covering the lock fee. When rates are flat or falling, rate lock is dead money.
Some lenders include rate lock free on premium packages. Others let you choose at application time. Lock is usually only available on fixed loans (not variable, where there's no rate to lock).
rate-lock fee · fixed rate lock · interest rate lock fee
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General information only — not personal financial advice. Verified against https://ratesniffers.com.au/glossary on 2026-06-01.