Lock Period Document For Free

If rates are expected to continue to rise, a 5-year mortgage term may be best. If rates are projected to fall, a 3-year mortgage term may be the best bet.

A lock period refers to a window of time, typically 30 to 90 days, during which a mortgage lender must keep a specific loan offer open to a borrower. During this period, the borrower prepares for closing, and the lender processes the loan application.

But what if you lock a mortgage and then rates fall? Unfortunately, you can't just unlock your rate to avoid paying higher interest. Your best option is to ask your lender about a rate ?float down,? although this will cost you an additional fee. Switching lenders last minute is also an option for refinancers.

In Canada, buyers are able to lock in a mortgage rate for as few as 30 days or as many as 130 days. The length of the term you receive is determined by the lender. Right now, BMO and Scotiabank offer the longest lock terms, at 130 days.

Most rate locks have a rate lock period of 15 ? 60 days. If the rate lock expires before your loan closes, you may have the option to pay a fee to extend the lock period. Otherwise, you'll get the interest rate that's available when you lock it before closing.

A mortgage rate lock is an agreement between a borrower and a lender that allows the borrower to lock in the interest rate on a mortgage for a specified time period at the prevailing market interest rate. A loan lock provides the borrower with protection against a rise in interest rates during the lock period.

But what if you lock a mortgage and then rates fall? Unfortunately, you can't just unlock your rate to avoid paying higher interest. Your best option is to ask your lender about a rate ?float down,? although this will cost you an additional fee. Switching lenders last minute is also an option for refinancers.