What is a rate hold and how long does it last on a mortgage in Ontario?
A rate hold is a commitment from a lender to offer you a specific interest rate for a defined period while you shop for a property or finalize your financing. Most lenders in Canada offer rate holds of 90 to 120 days as part of a pre-approval or when you submit a mortgage application.
During the rate hold period, if market interest rates rise, your locked-in rate is protected. If rates drop, many lenders will adjust down to the lower prevailing rate at the time of closing, though this is a lender-specific policy rather than a guaranteed right — confirm it in writing with your lender.
A rate hold does not commit you to borrowing from that lender. You can hold rates with multiple lenders simultaneously while you shop. However, some lenders will not approve your final application if they discover you are holding rates elsewhere, so be transparent with your mortgage broker. Rate holds also expire — if you do not close within the hold period, you will need to renew the commitment and may face a different rate if market conditions have changed. Your mortgage broker can help you track expiry dates and renegotiate as needed.
Key takeaways
- A rate hold protects your rate for 90–120 days while you house-hunt.
- If rates drop before closing, many lenders will offer the lower rate — confirm this in writing.
- You can hold rates at multiple lenders but be transparent with your broker.
- Holds expire — track your expiry date and renew if needed.