Fixed vs Variable › What is a rate lock and is it worth it?

What is a rate lock and is it worth it?

A rate lock holds a fixed rate for you between application and settlement, for a fee, so you are protected if fixed rates rise before your loan settles. Whether it is worth it depends on the fee and how rates are moving.

Written by Ross McFarlane, Licensed Mortgage Broker (Credit Representative 526725). About the author

Why this matters

Fixed rates can change between the day you apply and the day you settle, which can be weeks later. A rate lock removes that uncertainty for a cost. It is most valuable when rates look likely to rise during your settlement window. If rates are steady or falling, the fee may not be worth paying. A broker can help you weigh it.

The key points

It holds a fixed rate from application to settlement.
It protects against fixed rates rising in that window.
There is a fee for the lock.
Worth it depends on the fee and rate outlook.

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Last reviewed: June 2026

General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.