A rate hold is one of the most valuable tools in mortgage planning—yet many borrowers don't fully understand how they work or how to use them strategically. This guide explains everything you need to know about rate holds in 2026.
What Is a Rate Hold?
A rate hold (or rate commitment) locks in today's interest rate for a specified period while you shop for a home.
How It Works
- Get pre-approved for a mortgage
- Lender guarantees a specific rate
- Rate is "held" for 90-120 days typically
- If rates rise, you keep your lower rate
- If rates fall, you get the lower rate
Best of both worlds: Protected from increases, benefit from decreases.
Lock In Your Rate Today
Get pre-approved and secure a rate hold to protect yourself from rate increases.
Rate Hold Details
Standard Hold Periods
| Lender Type | Typical Hold Period | ------------- | -------------------- | Major banks | 90-120 days | Credit unions | 90-120 days | Monoline lenders | 120-150 days | Some brokers | Up to 180 days |
What Affects Your Hold Rate |
Factor | Impact | -------- | -------- | Type of mortgage | Different products, different rates | Term length | Longer terms usually higher | Insured vs conventional | Insured often lower | Time of year | Rates fluctuate seasonally | Economic conditions | Directly impacts rates |
How Rate Drops WorkYour rate hold doesn't lock you INTO a rate—it protects you from increases while allowing decreases. The "Float Down" FeatureIf rates drop during your hold period: |
Scenario | Your Rate | ---------- | ---------- | Held rate: 4.99%, Current rate: 5.29% | 4.99% (your held rate) | Held rate: 4.99%, Current rate: 4.79% | 4.79% (lower rate) | Note: Some lenders have restrictions on float downs. Confirm your lender's policy.
Strategic Uses of Rate HoldsStrategy 1: Ladder Your HoldsHow it works: Get rate holds from multiple lenders at different times. |
Week | Action | ------ | -------- | Week 0 | Get first rate hold (Lender A) | Week 4 | Get second rate hold (Lender B) | Week 8 | Get third rate hold (Lender C) | Benefit: Always have multiple rate options; use best available when closing.
Strategy 2: Quick Renewal Before ShoppingHow it works: Secure a rate hold before actively house hunting. Benefit: Protected from rate increases during your search. Strategy 3: Rate Lock Before Economic AnnouncementsHow it works: Get rate holds before expected Bank of Canada decisions. Benefit: Protected if rates rise; benefit if they fall. Rate Holds and Credit ScoreDo Rate Holds Hurt Your Credit?Getting pre-approved requires a credit check (hard inquiry): |
Concern | Reality | --------- | -------- | One inquiry impact | 5-10 points typically | Multiple mortgage inquiries | Count as ONE if within 14-30 days | Recovery time | Usually 3-6 months | Best practice: Shop multiple lenders within a short window (14-30 days) to minimize credit impact.
What Can Invalidate Your Rate HoldConditions That Must Be Met |
Requirement | Details | ------------- | -------- | Close within hold period | Must fund before expiry | Same property type | Rate may differ for different property | No major financial changes | Job loss, new debt can affect approval | Property must appraise | Value must support the mortgage | Same loan amount | Major changes may require re-approval |
What Happens If Hold ExpiresIf you don't close before your rate hold expires: |
Option | Details | -------- | -------- | Extend hold | Some lenders allow extensions | New rate hold | Get new hold at current rates | Use different lender | Compare options |
Renewals and Rate HoldsGetting Rate Holds at RenewalWhen your mortgage is up for renewal: |
Timing | Action |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 120 days before | Start shopping for rate holds | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 90 days before | Have multiple options lined up | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 60 days before | Receive renewal offer from current lender | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 30 days before | Make final decision |
Strategy: Use external rate holds to negotiate with your current lender.
Common Rate Hold Questions
Q: Can I have multiple rate holds at once?
Yes—there's no limit. You can have holds from several lenders and choose the best option when you're ready to close.
Q: Do rate holds cost anything?
No—rate holds are free. They're part of the pre-approval process.
Q: What if I find a home after my hold expires?
You'll get a new rate hold at whatever rates are available at that time.
Q: Can I extend my rate hold?
Some lenders allow extensions, though the rate may change. Ask before your hold expires.
Q: Does a rate hold guarantee mortgage approval?
No—a rate hold is conditional on final approval. Property and financial conditions must still be satisfied.
Rate Hold Checklist
Before getting a rate hold:
- [ ] Review your credit report
- [ ] Gather income documentation
- [ ] Know your down payment amount
- [ ] Understand your budget
When getting a rate hold:
- [ ] Confirm hold period length
- [ ] Ask about float-down policy
- [ ] Understand extension options
- [ ] Get rate in writing
During your hold period:
- [ ] Don't make major financial changes
- [ ] Monitor rates for potential improvements
- [ ] Keep documentation updated
- [ ] Communicate with your broker
FAQ
Q: Is a rate hold the same as pre-approval?
A: Related but different. Pre-approval is the qualification; rate hold is the rate guarantee that comes with it.
Q: What's a "prime minus" rate hold?
A: For variable rates, you hold a "discount from prime" rather than a fixed number. Your effective rate moves with prime.
Q: Can I negotiate the held rate?
A: Sometimes. Working with a broker gives you access to better rates through volume relationships.
Q: Does everyone get the same held rate?
A: No—rates vary by credit score, property type, down payment, and whether the mortgage is insured.
Q: Should I wait for rates to drop before getting a hold?
A: Risky. It's better to get a hold now (protection from increases) than wait and risk rates rising.
What's Next
Secure your rate today. Get pre-approved with our team and lock in a rate hold that protects you from increases while letting you benefit from any drops.
Lock In Your Rate Today
Get pre-approved and secure a rate hold to protect yourself from rate increases.
