Buying
Rate Hold
A pre-approval feature that locks the lender's current rate for typically 90 to 120 days, protecting you from rate increases while you shop.
When you get pre-approved, the lender holds the offered rate for a fixed period — typically 90, 100, or 120 days depending on the lender. If you find a property and close within that window, you get the held rate even if rates have risen since pre-approval. If rates have fallen, most lenders give you the lower one ("rate float-down").
The rate hold doesn't cost anything and doesn't bind you to that lender — you can shop other lenders right up to your closing date. It's purely a hedge against the worst-case scenario where rates spike during your home search.
Not all rate holds are equal. Some lenders only hold the rate on insured (high-ratio) mortgages; others hold on conventional too. Some require a fully underwritten application before honouring the hold; others honour it on a soft pre-approval. Ask your mortgage agent what specifically you'd be entitled to if you needed to use it.
Source: FCAC — Mortgage pre-approval