Understanding Rate Holds: How to Lock In Before You Shop

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You’ve probably seen headlines about fluctuating mortgage rates — one week they’re up, the next week they’re down. So how do you protect yourself from rate increases while you’re still shopping for your home?

That’s where a rate hold comes in — your behind-the-scenes advantage in a changing market.


🏦 What Is a Rate Hold?

A rate hold is when a lender or mortgage broker locks in a specific interest rate for a set period — typically 90 to 120 days — while you look for a home.

It doesn’t commit you to a mortgage yet, but it guarantees that even if rates rise, you’ll still qualify for the lower locked-in rate.

💡 Think of it as rate insurance while you shop.


📅 How It Works

  1. Talk to a mortgage broker and start your pre-approval.
  2. The broker submits your details to a lender.
  3. The lender confirms your eligibility and holds your rate (for up to 120 days).
  4. If rates go up — you’re protected.
  5. If rates go down — you still get the better rate.

It’s a no-lose situation for buyers.


🧾 What You’ll Need for a Rate Hold

To secure a rate hold, you’ll typically need:

  • Recent pay stubs and employment letter
  • Credit check
  • Proof of down payment (bank statements, RRSP, or gift letter)
  • Basic personal and financial details

Most lenders will lock your rate once the pre-approval is complete.


📈 Why Rate Holds Matter More Than Ever

In Alberta’s fast-moving market, even a 0.25% rate increase can change your buying power by thousands of dollars.

A rate hold gives you:

Peace of mind while you shop
Protection against sudden rate hikes
Clarity on your maximum purchase price
Flexibility to take advantage of lower rates if they drop

It’s the easiest financial safeguard most first-time buyers overlook.


🔄 Can You Renew or Extend a Rate Hold?

Yes — if you haven’t found the right home before your rate hold expires, your broker can often re-apply or renew it with updated financials.

Just note that:

  • A rate hold doesn’t affect your credit score.
  • You’re not locked into that lender.
  • You can still compare other offers before finalizing.

✉️ Ready to Lock In Your Rate?

Securing a rate hold early means you can shop with confidence — not worry about what the Bank of Canada is doing next.

If you’d like help starting your pre-approval or comparing rate options, our ARIVL team works with trusted mortgage brokers who make the process easy.

📩 Email hq@arivl.ca or call Jakie at 780-224-5566 to get connected today.

Your real estate adventure should be exciting, not uncertain — and a rate hold makes sure of that.

ARIVL: Your Real Estate Adventure Awaits!

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