How long does a rate hold last?

Rate holds typically last 90 to 120 days, depending on the lender and product. The hold gives you time to find a home and close your mortgage at the guaranteed rate.

What happens if rates drop during my rate hold?

Many lenders will give you the lower rate if market rates fall before you close, either automatically or through a float-down. Policies vary, so confirm with your lender or broker.

Does a rate hold guarantee I will be approved?

No. A rate hold locks the rate, but final approval still depends on verifying your income, credit, down payment, and the property, often through conditions and an appraisal.

Mortgage Glossary

What is Rate Hold?

A rate hold is a lender's guarantee that locks in a quoted mortgage interest rate for a set period, typically 90 to 120 days, before your mortgage closes. If rates rise during the hold, you still get the lower locked rate; if rates fall, many lenders let you take the lower rate instead. It protects you from rate increases while you shop for or close on a home.

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Quick answer

Also known as: Rate lock, Interest rate hold

Key points

A rate hold locks in a quoted interest rate for a set period before closing.
Hold periods are typically 90 to 120 days.
If rates rise during the hold, you keep the lower locked rate.
Many lenders let you take a lower rate if rates fall before closing.
If the hold expires before closing, the rate is no longer guaranteed.

Rate Hold explained

When you get a pre-approval or a rate quote, the lender often attaches a rate hold so you have certainty while you finalize your purchase. The hold period commonly runs 90 to 120 days, giving you time to find a property, firm up an offer, and complete the financing without worrying that rates will climb in the meantime.

Most rate holds protect you in one direction: if market rates go up before closing, you keep the lower held rate. Many lenders also offer a float-down or simply give you the lower rate if rates drop before you close, so you benefit either way, though policies vary. If the hold expires before your mortgage closes, the rate is no longer guaranteed and you may need a new quote at current rates.

What a Rate Hold is for

A rate hold exists to give buyers price certainty during the often unpredictable window between starting their home search and closing. It removes the risk that a rate increase will push the mortgage out of reach or change the numbers a buyer was counting on.

How it can help you

A rate hold lets you shop and make offers with confidence, knowing your rate is protected even if the market moves up. Because hold periods and float-down policies differ between lenders, securing the right one matters. Lenderoo shops 40+ lenders for free, helping you find a competitive rate and a hold that gives you enough time to close.

When it comes up

A buyer gets a pre-approval with a 120-day rate hold and then spends two months house-hunting. During that time, market rates rise, but because of the hold the buyer still gets their original, lower rate when they finalize the mortgage on the home they buy.

Example: Protection during a rising market

A buyer secures a pre-approval with a 120-day rate hold at 5.0%. Over the next three months, while they search for a home, market rates climb to 5.5%.

When the buyer firms up an offer and completes their mortgage within the 120 days, they still receive the held 5.0% rate, not the higher current rate, saving them money over the term. If rates had instead fallen to 4.7%, many lenders would let the buyer take the lower 4.7% rate rather than holding them to 5.0%.

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Questions & answers

Rate Hold: frequently asked questions

Common questions Canadians ask about rate hold.

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Related mortgage terms

Pre-Approval

Conditional approval for a mortgage before house hunting.

Read definition

Interest Rate

The cost of borrowing money, expressed as a percentage of the loan amount.

Read definition

Conditional Approval

A lender approval subject to conditions like income verification and appraisal.

Read definition

Fixed-Rate Mortgage

A mortgage with an interest rate that remains constant.

Read definition

Closing Date

The day ownership of the property legally transfers and the mortgage funds advance.

Read definition

Back to full glossary

Understand your mortgage with confidence

Lenderoo shops 40+ lenders for free and pairs you with a mortgage professional who keeps the jargon simple — and gets you a great rate.

Find my best mortgage Explore the glossary

Mortgage Glossary

What is Rate Hold?

Find my best mortgage Back to glossary

Quick answer

Also known as: Rate lock, Interest rate hold

Key points

A rate hold locks in a quoted interest rate for a set period before closing.
Hold periods are typically 90 to 120 days.
If rates rise during the hold, you keep the lower locked rate.
Many lenders let you take a lower rate if rates fall before closing.
If the hold expires before closing, the rate is no longer guaranteed.

Rate Hold explained

What a Rate Hold is for

How it can help you

When it comes up

Example: Protection during a rising market

A buyer secures a pre-approval with a 120-day rate hold at 5.0%. Over the next three months, while they search for a home, market rates climb to 5.5%.

Have a question about rate hold?

Lenderoo shops 40+ lenders for free and matches you with a mortgage professional who explains every term — and finds your best rate.

Get pre-approved free Talk to an expert

Questions & answers

Rate Hold: frequently asked questions

Common questions Canadians ask about rate hold.

Keep learning

Back to full glossary

Understand your mortgage with confidence

Lenderoo shops 40+ lenders for free and pairs you with a mortgage professional who keeps the jargon simple — and gets you a great rate.

Find my best mortgage Explore the glossary