1.3. Holding a fixed interest rate

National Bank's fixed interest rates can be held for up to 30 days without charge, or up to 90 days for a fee.

Why lock-in a fixed interest rate?

When it is appropriate, we do this so you get the choice of the best interest rates available.

In a rising interest rate environment, you may prefer to hold a current fixed interest rate rather than take the risk that the prevailing fixed rates will still be available when you want to draw down your loan. 

Locking in your fixed interest rate can give you peace of mind, but we will explain the pros and cons of National Bank's lock-rate mechanism at the time, and in the context of your circumstances. 

What this means

If you choose to lock-in (i.e hold) an interest rate (you can only hold a fixed interest rate), this rate will be applied to the loan regardless of any interest rate movements (up or down) for up to 90 days between when National Bank's lock-rate mechanism is signed and the loan is drawn upon.

How it is done

Mortgage Warehouse will discuss, with you, whether or not you should lock-in a fixed interest rate.  In doing so, we will explain the pro and cons of locking, or not locking, based on the prevailing interest rate environment, your circumstances, and your preferences. 

If you decide to hold a fixed interest rate for some, or all, of your lending we will then assist you to finalise your preferred lending structure.  Your lending structure must be finalised prior to locking an interest rate, as these details cannot be changed once the interest rate has been locked. 

The mechanism to hold a fixed interest rate is available for new and existing National Bank customers. 

We will take care of the paperwork for you. 

National Bank's 90 day lock-rate policy

Don't worry if the criteria below confusing, we will explain exactly what is required to hold a fixed interest rate and take care of this for you.

National Bank's fixed rate hold mechanism (Reserve Rate Agreement) is available for new lending and for existing loans. 

Signing a Reserved Rate Agreement locks-in today’s interest rates for

• up to 30 days in advance for no fee, or
• up to 90 days on payment of a fee. 

A non-utilisation recovery charge will apply if any changes are made to the the Reserved Rate Agreement, or if the loan is not drawn down.

During the term of a Reserve Rate Agreement;

• If interest rates increase your fixed interest rate is held at the lower rate. 
• If interest rates decline you are bound to the higher rate.
  

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