Mortgage Rate Lock Explained: How Rate Holds Work in Canada

A rate hold, or rate lock, lets you shop for a home or a new mortgage knowing the rate a lender will give you for a set period. This page covers how long holds last, what the big banks state about theirs, what happens if rates move, and what a hold doesn’t guarantee. It’s part of the mortgage rates hub; for comparing the rates themselves, see how to get the best mortgage rate, 5-year fixed rates and variable rates.

What a rate hold is

A rate hold comes with a mortgage preapproval. The Financial Consumer Agency of Canada (FCAC) says the preapproval process may let you:

• know the maximum amount of a mortgage you could qualify for
• estimate your mortgage payments
• “lock in an interest rate for 60 to 130 days, depending on the lender”

During the process the lender “looks at your finances to find out the maximum amount they may lend you and at what interest rate”, and FCAC adds that “This process does not guarantee your approval for a mortgage.” It notes that the process may also be called prequalification or preauthorization, and that “Different lenders have different definitions and criteria for each step they offer.”

What the big banks state

Each bank’s pre-approval page, as of October 2, 2026:

These are the banks’ own descriptions; terms change, so confirm them with the lender when you apply. RBC, CIBC and BMO each describe their pre-approval as free with no obligation. At other lenders the hold period depends on the lender, as FCAC notes, which is why it suggests asking.

If rates rise or fall during the hold

If rates rise, the hold is what protects you. TD: “If the interest rate on the term chosen in your pre-approval goes up, we will hold the rate we pre-approved you for if you meet all other conditions.” BMO: “If you get pre-approved for a fixed-rate mortgage and rates suddenly increase, we’ll still honour the original lower rate for up to 130 days.”

If rates fall, what happens depends on the lender. FCAC suggests asking “if you will automatically get the lowest rate if interest rates go down while you’re preapproved.” TD, for example, says “you can ask to have your pre-approved interest rate adjusted to reflect the lower current rate”, which is something you ask for rather than something that happens on its own.

For a variable rate, ask what the hold covers. RBC notes that “You can’t lock in a variable rate itself, since it moves with your lender’s prime rate”, so what a lender can hold is the rate relative to its prime rate, not where prime will be when you close.

What a rate hold doesn’t guarantee

A held rate is not a mortgage approval. FCAC’s guidance on preapproval:

• A preapproval doesn't guarantee approval: a lender could refuse you even after preapproving you.
• Before approving the loan, the lender checks that the property meets its standards, which vary from lender to lender.
• The preapproved amount is the most you may get, not a guarantee; the approved amount depends on the property's value and your down payment.

RBC states plainly that “A pre-approval is not a guaranteed loan, nor a commitment of financing.” The conditions in the table above are about your finances staying the same. CIBC says that changes to your credit history between pre-approval and final approval, “such as a new car loan or paying off a student loan”, “could impact the mortgage amount you can afford.” Lenders also qualify you at a higher rate than the one they hold, under the mortgage stress test (for an insured mortgage at any lender, and for an uninsured one at a federally regulated lender).

Credit checks

FCAC says lenders “likely run a credit check” during preapproval, and the table shows the banks differ: RBC describes a soft credit check with no impact on your score, TD says its online application has no impact on your credit score, CIBC says its check “may impact your credit score”, and BMO describes a hard credit check. How your credit score affects your mortgage rate covers how lenders use your score.

When the hold runs out

RBC: “If your pre-approval expires before you find a home, it simply means you’ll need to reapply for your pre-approval. This process may involve updating your financial information and undergoing a new credit check.” A new hold is at the rates on offer then. FCAC suggests asking “if the pre-approval can be extended.” Comparing the hold length with when you expect to buy helps judge whether a hold now will still be in force when you need it.

Rate holds at renewal

When your term ends, you can shop for a new rate. FCAC says “You don’t have to renew your mortgage with the same lender” and suggests you “Start shopping around a few months before the end of your term” (FCAC, renewing your mortgage). If your mortgage is with a federally regulated lender, such as a bank, the lender must send you a renewal statement at least 21 days before your term ends, or tell you by then that it won't renew; the statement shows the balance, interest rate, payment frequency, term and any fees, and says the rate offered won't go up before the renewal date. How early a new lender will hold a rate for a switch is up to that lender, so ask. The best time to renew your mortgage and the renewal hub cover the timeline.

Holds through a mortgage broker

FCAC says “You can get a mortgage preapproval from mortgage lenders and mortgage brokers”, so a broker can arrange a rate hold as well. Using a mortgage broker lists what FCAC suggests asking one, including which lenders they work with, and what a mortgage broker does covers the rest.

Questions to ask about a rate hold

FCAC suggests asking your lender or broker:

• how long they guarantee the preapproved rate
• if you will automatically get the lowest rate if interest rates go down while you’re preapproved
• if the pre-approval can be extended

It’s also worth asking which conditions apply to the hold, what kind of credit check the lender runs, and, for a variable rate, whether the hold covers the spread to prime. How to negotiate your mortgage rate covers using a held rate as a benchmark when you compare offers.