May 27, 20263 min read
If you are planning a purchase, understanding this topic before you submit an application can prevent surprises. A rate hold can protect an eligible borrower from certain rate increases for a limited period while they search for a property or complete a transaction.
Key points to understand
Here is what matters most:
- The length of the hold varies by lender and product.
- A rate hold is normally conditional on the borrower and property ultimately meeting lender requirements.
- Some lenders provide different rate-hold policies for pre-approvals than for firm purchase files.
- If rates fall during the hold period, ask whether the lender offers a float-down or can reprice the file.
Confirm the expiry date and conditions in writing so your offer and closing timeline fit inside the protected period.
Want this applied to your own numbers?
Call Phil Cragg at 866-349-4915 or request a written comparison.
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