What is the difference between a rate hold and locking in my mortgage rate in Ontario?

A rate hold and a rate lock-in are related but not identical concepts. A rate hold is typically associated with a pre-approval — the lender reserves a rate while you are still shopping and have not yet made a purchase offer. It is informal in the sense that you have not yet applied for a mortgage on a specific property.

Locking in your rate happens when you commit to a specific term and rate on an actual mortgage application — either at the time you apply after having a firm offer accepted, or upon renewal. At that point, the rate is recorded in your commitment letter. If rates rise between when you lock in and when you close, your rate is protected. Many lenders also offer a float-down provision that lets you capture a lower rate if rates drop before closing, though this is not universal.

The critical point is that a rate hold during pre-approval does not automatically lock into your actual mortgage — you still need to apply for the specific property and confirm the commitment. Do not assume your pre-approved rate will be your closing rate without confirming. Ask your mortgage broker to confirm in writing what rate applies, when it was locked, and what the expiry is so there are no surprises on closing day.