Conversion Options: As mentioned in the previous page, you may want to lock into a fixed term. Therefore, you need to know what policies are in place when you are ready to lock in. Is there a fee involved? Do you have to wait a period of time before you can lock in? Do you have to lock into a certain length of term? All factors should be considered.

Interest Rate at Lock in: Although all product features are important, this is probably the most important feature. Many lenders, especially banks, promise that you will receive the best rate possible when you choose to lock in. But whose best rate? Is there a clear policy in place to ensure that you get the best rate? Was it just a verbal agreement between you and your bank manager who might be transferred in six months and therefore cannot honour your agreement? It is imperative that you have the lock in feature's rate policy in writing, something most major banks can't do. Without a clear policy in place, you are guaranteed nothing…and you could end up with a really high rate when you are ready to lock in.

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