What a rate hold guarantees
During the hold period, typically 90 to 120 days depending on the lender, you're protected against rate increases. If rates go up, you keep the held rate, and if rates drop, most lenders will give you the lower rate instead.
What it doesn't guarantee
A rate hold is not a full mortgage approval. You'll still need to go through underwriting once you have a specific property, and your final approval depends on the appraisal, updated documents, and your financial situation at that time.
- Protects against rate increases during the hold period
- Does not guarantee final approval on a specific property
- Usually lasts 90 to 120 days depending on the lender
What happens if you don't buy in time
If your hold expires before you find a property, you'll typically need a new rate hold based on current market rates, so it's worth timing your pre-approval around a realistic house hunting timeline.
Getting the most from your hold period
Use the time to get your documents fully organized so that once you find a property, your broker can move quickly through underwriting rather than starting the paperwork process from scratch.
Frequently asked questions
- Can I get a rate hold with more than one lender at once?
- Yes, it's common to get pre-approved with a couple of different lenders through your broker to compare options and increase flexibility.
- Does a rate hold cost anything?
- No, rate holds are typically offered at no cost as part of the pre-approval process.
- What if I find a home right before my hold expires?
- Let your broker know immediately so they can either fast track your file or arrange an extension with the lender if possible.