Interest ratesMarket practice
How long does a rate hold last?
Usually 90 to 120 days from approval. If rates fall during the hold you get the lower rate; if they rise you keep the held one.
The hold is a one-way option in your favour, which is why getting one early costs you nothing. Most lenders will honour a drop before funding.
When it expires you are re-qualified at current rates and current policy, and both can have moved. A rate increase during a long search can cut your maximum price materially, which is a bad surprise to have while you are negotiating.
Ask your broker to diary the expiry and re-hold about four weeks out. Re-holding usually means a light refresh of documents rather than starting over.