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Members Equity Bank Limited ABN 56 070 887 679. AFSL and Australian Credit Licence 229500.
Rate lock agreement.
1. How rate lock works.
If you elect to lock our current fixed interest rate for your chosen fixed interest rate period, for as long as the Rate Lock continues to be eective:
• if our prevailing fixed interest rate increases before the settlement date (for new loans) or fix start date (for existing loans commencing a new fixed interest
rate period), your fixed interest rate will not change and will remain at the locked rate; and
• if our prevailing fixed interest rate decreases before the settlement date or fix start date (as relevant), your fixed interest rate will also decrease.
2. Rate lock fee.
A Rate Lock Fee of $500 is payable by direct debit if you send us your Rate Lock Request and we accept this. You must provide your direct debit account
details with the Rate Lock Request. If the direct debit account details are not provided in the Direct Debit Request attached or the direct debit payment is
dishonoured, the Rate Lock will not be eective, unless, at our discretion, we choose to honour the Rate Lock Request in which case you authorise us to debit
the Rate Lock fee to your loan account and you agree to pay it upon our demand.
3. Rate lock duration.
Your Rate Lock commences on the day we process your Rate Lock Request. Your Rate Lock Request will be processed by us:
• on the business day we receive it provided it is received before 4pm (AEST) on that day; or
• on the next business day if we receive it after 4pm (AEST) or on a day that is not a business day.
In this clause 3, "business day" means a weekday except a national public holiday or a public holiday in Victoria.
The locked rate you receive will be our prevailing fixed interest rate applicable to your chosen fixed interest rate period on the day your Rate Lock Request
is processed by us. Your Rate Lock expires 90 days after the commencement of the Rate Lock or earlier if you make changes to your loan and clauses 5-6
below applies. The Rate Lock cannot be extended under any circumstances.
4. Rate lock not effective after expiry.
If the settlement date (for new loans) or fix start date (for existing loans commencing a new fixed interest rate period) occurs after the expiry of the Rate
Lock, and our prevailing fixed interest rate changes before the settlement date or fix start date (as relevant), your fixed interest rate will also change because
the Rate Lock will no longer be eective.
5. Rate lock revised if you make certain changes to your loan.
If you make any of the following changes to your loan:
• your stated loan purpose is incorrect;
• you change your repayments from interest only to principal and interest,
or vice versa;
• you lock in a rate that is oered with the Member Package, but choose to
cancel the Member Package
• you lock in a rate that is oered without a Member Package, but choose
to purchase a Member Package; or
• your loan-to-value ratio changes in such a way that a dierent fixed rate
pricing tier applies,
we will revise your Rate Lock based on the changed loan details. The fixed interest rates available for your selected fixed interest rate period at the time your
Rate Lock was originally processed will apply to the revised Rate Lock, and the revised Rate Lock will still expire 90 days from the time your Rate Lock was
originally processed.
6. Rate lock expires if you change your fixed interest rate period.
Your Rate Lock will expire early upon you making a change to your fixed interest rate period. The Rate Lock Fee will not be refunded if this occurs. If you again elect to
lock in your interest rate, you will be required to make a new Rate Lock request by sending us another Rate Lock Request form and paying for another Rate Lock fee.
7. Refund of rate lock fee if you loan application is declined.
The Rate Lock Fee will be refunded only if your loan application is declined. The Rate Lock Fee amount will be returned to the nominated account from which
you made the direct debit payment after 14 days.
8. Verifying your identity.
If you are not an existing ME customer before we can open an account we are legally required to verify your identity. We may do this electronically using
reliable and independent data sources. We will contact you to request identification documents if we cannot verify your identity electronically.
9. Privacy notice.
ME collects your personal information to assess your Rate Lock Request and to provide you with the Rate Lock services. Some information must be collected under the
Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth). If you do not provide us with your personal information we cannot process your application.
We will not disclose the personal information we collect through your application to any third parties (other than to your broker (if applicable) and to our
service providers – such as our mailing house). However, if you apply for a banking product (such as a home loan), the information we collect from you in
respect of that application will be managed in accordance with the Privacy Notice provided to you at that time.
Our Privacy and Credit Reporting Policy is available at mebank.com.au and contains information about how to access and seek the correction of your
personal information, and about our complaint handling procedures. Our Privacy Ocer can be contacted by calling 13 15 63 or by writing to Privacy Ocer,
ME, GPO Box 1345, Melbourne VIC 3001.
10. Important information about fixed interest rates.
Please think carefully whether fixing the interest rate on your loan is suitable for your financial circumstances and if you are unsure, we suggest you obtain
independent financial advice.
If you choose a fixed rate and term, it is possible that interest rates may fall below the rate of interest applied to your loan during the fixed period.
If your loan is discharged or terminated for any reason before the end of the fixed interest rate period, you may be required to pay a prepayment fee
as a result of breaking your fixed rate contract.
Please be aware that making certain alterations to your fixed loan will also result in a break to your fixed rate contract. Your loan will change to the
variable interest rate applicable at the time and you may incur a prepayment fee. Examples of these alterations include but are not limited to:
• Extending your loan term • Topping up your fixed loan • Switching home loan product type
• Redrawing funds from a fixed loan • Requesting to change to a variable interest rate • Discharging your loan due to sale or refinance
An additional payment (lump sum) can be made to your loan without breaking your fixed rate contract, however, your repayments may be recalculated
and a partial prepayment fee may apply.
Rate lock agreement
important information.
For any enquiries contact us on 13 15 63 or visit mebank.com.au