Some lenders will guarantee an interest rate for home buyers. This can be a useful tool for giving you some extra time as you finalize your home search and even when you finally begin negotiations. This guarantee is called a rate hold.
If you walked into your local bank and asked them for a rate hold, any rate hold they offered would be for 60, 90, or 120 days. Since the bank sets their own lending rate, it’s simple for them to guarantee a rate hold.
It’s not quite that easy for mortgage brokers. In order to get rate holds, we have to contact each bank, which can be challenging for us considering we work with dozens of partner lenders.
When we apply for rate holds for you, we usually get them from a handful of lenders after we have researched which ones will offer the best rates.
Keep in mind that rate holds apply on only fixed rates. If you hope to have a variable rate mortgage, you won’t be able to qualify for a rate hold.
If you’re focused on a fixed rate, that’s great. In order to make your rate hold more likely, make sure you provide as much detail as possible when you meet with us. If we know in advance that your place has a basement suite, for example, or that you’re willing to pay 25% of the purchase price as a down payment, it’ll be easier to get a rate hold for you.
Contact us today to see if a rate hold is right for you.