Embarking on the journey to purchase your first home is one of life’s most thrilling and rewarding milestones!
To ensure a smoother mortgage process, one of the smartest steps you can take is to get pre-approved for your mortgage. While pre-approval doesn’t lock you into a single lender, it does secure the interest rate offered to you for 90 to 120 days, providing a critical buffer if rates rise while you’re still house hunting.
### Why Rate Holds Matter in Mortgages
**Protection Against Rate Increases:** A rate hold guarantees that you will receive a specified interest rate for a set period, typically up to 120 days. This means you’re protected from potential rate hikes during that time. Plus, if rates drop, you can still take advantage of the lower rate!
**Financial Planning:** Knowing your exact interest rate allows for better financial planning and budgeting. You’ll have clarity on your expected monthly mortgage payments, making it easier to target the right price range for your new home and ensuring future financial stability.
**Time for Decision Making:** With a rate hold, you gain peace of mind and the necessary time to shop around for the right home. It allows you to compare different mortgage options without the pressure of rising interest rates. This is especially valuable when you’re considering various lenders or mortgage products.
**Stress Reduction:** Rate holds reduce the stress associated with rate fluctuations and uncertainties in the housing market. After the past few years of market volatility, having a secured mortgage rate can ease the pressure of finding a new home quickly. And if your rate hold expires, you can easily apply for a new one!
**Securing a Competitive Rate:** Even though interest rates are not expected to rise dramatically in the near future, locking in a rate while you shop can save you money in the long term. This ensures you have a favorable interest rate if the market unexpectedly shifts.
### Make the Most of Your Home Purchase with a Rate Hold
Overall, rate holds offer peace of mind, financial security, and the opportunity to make informed decisions when entering into a mortgage agreement. They are particularly valuable in fluctuating interest rate environments or when you anticipate delays in finalizing your mortgage transaction.
Are you planning to purchase a home soon? Want more information on how rate holds can benefit you? Reach out to me today!
Secure your future home with confidence by taking advantage of a rate hold and ensuring your path to homeownership is as smooth and stress-free as possible.
Danny Benjamin
T: 289-455-8801
E: dannybenjamin@dominionlending.ca