Secure Your Best Mortgage Rate

 

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Not ready to apply, but looking to lock in an interest rate just in case? Get a Rate Hold.

Benefits of a Mortgage Rate Hold

  • Protects you from paying more interest if rates go up before you secure a property

  • Provides flexibility so that you can have up to 120 days knowing your rate is guaranteed

  • Costs nothing and takes a lot less time than doing an application

  • You don’t need to have a property picked out to get a rate hold

  • You aren’t committed to working with that lender if you decide not to.

Things To Know About a Mortgage Rate Hold

  • The rate will expire at the end of your rate hold period

  • The lender does not review your finances in detail

  • A rate hold does not guarantee approval

Why Are Rates Different for Different Situations?

  • Borrowers with under 20% down in Ontario can purchase using an insured mortgage.

    Since the borrower is paying for default insurance, the lenders risk is much lower vs a conventional mortgage.

    The cost of the insurance is added to the mortgage balance.

    An insured purchase will usually get the best rates, even compared to someone with a larger down payment.

  • Sometimes Higher Rates than Owner Occupied.

    Since the property is not your principal residence, lenders know that if the investment goes badly then you might not be able to pay. The increased risk can translate into slightly higher rates.

    Investment properties are not eligible for an insured mortgage.

  • Once you have 20% down payment, you no longer need to pay for Mortgage Default Insurance!

    The downside is that there is slightly more risk for the lender, so a mortgage with more than 20% down could have a higher rate than the insured mortgages.

    As your down payment goes up to 25%, 30%, or 35%, your rate can decrease by a little each time.