If you’re planning to buy a home in Canada this year, one simple mortgage feature could protect you from rising interest rates and give you peace of mind — the rate hold. Many buyers overlook it, but it can make a huge difference in how confident you feel while house hunting. Here’s everything you need to know about rate holds, why they matter in 2025, and how to secure one.

What Is a Rate Hold?

A rate hold is when a lender promises to lock in today’s mortgage rate for a set period of time, usually up to 120 days, while you search for a home. If rates go up during that time, you’re protected — you’ll still get the lower rate you locked in. If rates go down before you close, you’re free to take advantage of the lower rate. It’s a win-win tool that adds certainty to your buying process.

Who Can Get a Rate Hold?

Rate holds are most commonly available to borrowers getting pre-approved for a fixed-rate mortgage. Some lenders also offer holds on variable rates, though it’s less common. When you work with Homewise, we compare options from top lenders across Canada and highlight which ones offer strong rate hold protection.

Why Rate Holds Matter in 2025

With the Bank of Canada expected to adjust rates multiple times this year, mortgage rates could shift quickly. A rate hold removes that uncertainty. You can shop for a home knowing your monthly payments won’t unexpectedly increase if rates rise before you close. Since rate holds are free and don’t commit you to any lender, they’re one of the smartest protections for buyers in today’s market.

Example of a Rate Hold in Action

Imagine you’re pre-approved for a 5-year fixed mortgage at 4.79%. Ninety days later, rates rise to 5.29%. Thanks to your rate hold, you still qualify at 4.79%. That difference could save you hundreds of dollars each month. And if instead rates drop to 4.49%, you can take the lower rate before closing.

How to Get a Rate Hold

Getting a rate hold is simple. Apply online at thinkhomewise.com, and our team will secure one with the best lenders for your situation. The entire process takes minutes, and you’ll know you’re protected before you start shopping.

What’s the Catch?

There isn’t much of one, but there are a few things to keep in mind:

  • Rate holds are tied to your pre-approval. If your financial situation changes, your pre-approval (and rate hold) may need to be updated.
  • Most rate holds are available for new purchases, not renewals or refinances. If you’re renewing, you should still start early to compare your options and secure the best deal.

Final Thoughts

A rate hold is one of the easiest ways to reduce stress during your home search. It gives you confidence, protects you from rate hikes, and doesn’t cost a thing. If you’re planning to buy this year, reach out to Homewise and take advantage of this free and powerful tool.

FAQs

1. How long do rate holds last?
Typically up to 120 days, though some lenders may offer shorter or longer periods.

2. Do I have to use the lender that gave me the rate hold?
No. You’re not committed to that lender. You can still shop around and choose another option before closing.

3. Can I get a rate hold for a mortgage renewal?
Usually not. Rate holds are meant for new purchases. However, starting early on your renewal still gives you leverage to compare and negotiate.

4. Do rate holds cost money?
No. Rate holds are free and simply part of the pre-approval process.