Mortgage Blog

Mortgage Rate Holds - How to secure a lower rate today!

February 10, 2022 | Posted by: Barb Pinsent - Trusted Fort McMurray Mortgage Associate

Trying to secure the lowest interest rates is usually one of the biggest goals for you (and me!) when getting a mortgage. Wouldn’t you feel more relaxed and less rushed to find your dream Fort McMurray home if you knew you could secure a mortgage rate for a period of time

YOU CAN! With a Mortgage Rate Hold you can lock in your quoted rate for a length of time. You can think of this period as a “guarantee” of that rate, assuming you qualify for the mortgage. Most lenders offer rate holds between 90 to 120 days

Rate holds are usually available for fixed rate mortgages and, although not all lenders offer rate holds on variable rate mortgages, there are some who do.

WHAT’S THE BENEFIT?

Finding your dream home can sometimes be a lengthy process and making an offer for your biggest purchase in life can be a HUGE decision. You don’t want to feel rushed to find a home and secure a mortgage just to ensure you don’t get stuck with a big rate hike

This is where the benefit of rate holds can give you protection. Locking in your mortgage rate for the hold period means your rate will not go up and you can house hunt without pressure. The bonus – if interest rates go down during the hold period and you are ready to purchase, a home in Fort McMurray you will get your mortgage with the new lower interest rate

Currently, fixed rates are on the move as several banks and lenders increased their interest rates in recent months. This increase could make a big difference to your monthly payments and overall interest on your mortgage. With the guarantee offered by a rate hold, you could lock in your interest rate in January and keep it until April with a rate hold of 120 days. That allows a significant amount of time for purchasing and closing on your new home.

REMEMBER...

While a lender will guarantee a rate for the duration of its rate hold period, that shouldn’t be seen as a guarantee that you’ll be approved for the mortgage. While rate holds and pre-approval usually go hand in hand, neither is an approval on your mortgage

The lender must verify your credit history, documentation and other financial details to ensure that you can qualify for the loan. Despite having a rate hold, a lender can still refuse an application if you can’t meet the minimum qualification requirements

If you are looking at purchasing in 2022, I am here to help you find the best interest rates, terms and conditions for your individual situation. Let’s start the process and secure you a great rate so you can shop with confidence and at your own pace. Reach out to me today at 780.370.1490.

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