In this blog we will breakdown out top tips for mortgages for the second half of 2023. Between navigating current rates, and shopping in a seller’s market, we have a rundown of what you should know for the latter half of 2023 about rate holds.

Rate Holds

If you are renewing your mortgage, refinancing, or even buying a home the term “rate hold” is important – especially in an increasing rate environment like we’re in now! A normal rate hold period is usually about 120 days or four months. The purpose of the rate hold is to secure the interest rate on your mortgage application for a time period.

For your mortgage renewal, contacting us early is important. With a new application we can lock in a rate and then track it in our system. We review all of our applications in process on a weekly basis and if mortgage rates happen to go down, we request a rate drop. If mortgage rates go up – you can be assured, you have your rate held.

If you are purchasing a home and need a mortgage pre-approval the rate held for the pre-approval can be a little hirer than those currently offered. Why? That’s because the lenders have to set aside the money for you at a particular rate. And of course they don’t want to lose money!

But what’s most important when you get a mortgage pre-approval is not just getting a good mortgage rate, but understanding your budget and how rates and amortization periods affect your mortgage payments. If you have 20% as a down payment or more, many first time home-buyers are electing to take 30 year amortizations temporarily to help them with affordability.

The rate hold does not commit you to working with that lending institution, but it will improve the likelihood of getting a good mortgage that meets your budget. It also allows you to plan ahead in a raising rate environment.

Tired of working with your bank? Why not skip the bank and let us help you get a good mortgage with a broker that works for you such as The Mortgage Centre. Contact our team to get started.