Kanetix Forum

Can you please explain what a rate lock is?

Rate locks protect you from rising interest rates during the processing of your loan.  This will hold today¿s rate for a three to four month period depending on the lender. If interest rates happen to improve while you are still in the processing stage of your loan, your rate hold is dropped and the lower rate will be applied.
Paul Sidhu, Principal Mortgage Broker at KTX Financial Ltd.

Neither Kanetix® nor the KanetixForum.ca is a mortgage broker or agent. Although this information has been passed along to you from KTX Financial through the Forum, we are not responsible for the opinions expressed by them. Mortgages can be complicated. When reading these answers, keep in mind each person¿s situation is unique. Individual responses may vary depending on your lender, geographic location, and specific circumstances. If you have a similar situation, always speak with your mortgage provider, or a licensed mortgage representative, for terms and conditions that may apply to you.

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