A rate hold is one of the most valuable tools in mortgage planning—yet many borrowers don't fully understand how they work or how to use them strategically. This guide explains everything you need to know about rate holds in 2026.
What Is a Rate Hold?
A rate hold (or rate commitment) locks in today's interest rate for a specified period while you shop for a home.
How It Works
- Get pre-approved for a mortgage
- Lender guarantees a specific rate
- Rate is "held" for 90-120 days typically
- If rates rise, you keep your lower rate
- If rates fall, you get the lower rate
Best of both worlds: Protected from increases, benefit from decreases.
Lock In Your Rate Today
Get pre-approved and secure a rate hold to protect yourself from rate increases.
Rate Hold Details
Standard Hold Periods
Strategy: Use external rate holds to negotiate with your current lender.
Common Rate Hold Questions
Q: Can I have multiple rate holds at once?
Yes—there's no limit. You can have holds from several lenders and choose the best option when you're ready to close.
Q: Do rate holds cost anything?
No—rate holds are free. They're part of the pre-approval process.
Q: What if I find a home after my hold expires?
You'll get a new rate hold at whatever rates are available at that time.
Q: Can I extend my rate hold?
Some lenders allow extensions, though the rate may change. Ask before your hold expires.
Q: Does a rate hold guarantee mortgage approval?
No—a rate hold is conditional on final approval. Property and financial conditions must still be satisfied.
Rate Hold Checklist
Before getting a rate hold:
- [ ] Review your credit report
- [ ] Gather income documentation
- [ ] Know your down payment amount
- [ ] Understand your budget
When getting a rate hold:
- [ ] Confirm hold period length
- [ ] Ask about float-down policy
- [ ] Understand extension options
- [ ] Get rate in writing
During your hold period:
- [ ] Don't make major financial changes
- [ ] Monitor rates for potential improvements
- [ ] Keep documentation updated
- [ ] Communicate with your broker
FAQ
Q: Is a rate hold the same as pre-approval?
A: Related but different. Pre-approval is the qualification; rate hold is the rate guarantee that comes with it.
Q: What's a "prime minus" rate hold?
A: For variable rates, you hold a "discount from prime" rather than a fixed number. Your effective rate moves with prime.
Q: Can I negotiate the held rate?
A: Sometimes. Working with a broker gives you access to better rates through volume relationships.
Q: Does everyone get the same held rate?
A: No—rates vary by credit score, property type, down payment, and whether the mortgage is insured.
Q: Should I wait for rates to drop before getting a hold?
A: Risky. It's better to get a hold now (protection from increases) than wait and risk rates rising.
What's Next
Secure your rate today. Get pre-approved with our team and lock in a rate hold that protects you from increases while letting you benefit from any drops.
Lock In Your Rate Today
Get pre-approved and secure a rate hold to protect yourself from rate increases.
