RATE HOLDS EXPLAINED — WHAT THEY ARE & HOW THEY WORK
- johnathanmcquoid
- Jan 17
- 2 min read
If you’ve ever spoken with a mortgage broker, you’ve probably heard the term rate hold — but most buyers don’t actually know what it means or how powerful it can be.
Here’s a simple breakdown 👇
1️⃣ What is a rate hold?
A rate hold is a lender’s commitment to lock in an interest rate for you for a set period of time — even if rates rise while you’re shopping for a home.
It’s designed for buyers, not refinances or transfers.
2️⃣ How long does a rate hold last?
Most lenders offer up to 120 days.
During this time, you do not need:
✔️ a property
✔️ an accepted offer
✔️ a firm closing date
You simply secure the rate while you shop.
3️⃣ Does a rate hold commit me to anything?
No.
A rate hold does NOT:
✔️ lock you into that lender
✔️ lock you into the broker who submitted it
✔️ guarantee a mortgage approval
✔️ hurt future approval chances (as long as you’re not submitting multiple rate holds everywhere)
It’s simply a way to protect you if rates rise.
4️⃣ What if rates go UP?
Your rate hold protects you.
Example:
You lock a rate today.
If rates increase during your 120-day window, you still keep the lower rate.
5️⃣ What if rates go DOWN?
You get the lower rate.
A rate hold protects you from increases — it does not trap you if the market improves.
6️⃣ What happens when the 120 days expire?
You can simply submit another rate hold at whatever rates are available at that time.
There’s no penalty and no downside.
💡 Why this matters
A rate hold gives you:
✔️ peace of mind
✔️ protection from rate hikes
✔️ time to shop without pressure
✔️ flexibility if the market changes
It’s especially valuable for first-time buyers or anyone trying to plan ahead while watching the market.
💬 Final Thought
A rate hold costs nothing, commits you to nothing, and can save you thousands if rates rise.
If you want to secure a rate while you shop — or find out what you qualify for — message The Frontline Mortgage Group.
We can set up a rate hold and guide you through your next steps. 💬