Rate Hold vs. Floating - What’s Best in Today’s Saskatchewan Market?
August 27, 2025 | Posted by: Lisa Helfrick - Trusted Saskatoon, Regina and Saskatchewan Mortgage Broker
Saskatoon and Regina mortgage broker advice to help you decide with confidence
Thinking about your next mortgage in Saskatoon or Regina raises a common question. Should you protect yourself with a rate hold, or keep a floating option open to capture lower rates later. Here is a simple way to think about it, with local examples and steps you can act on today.
Did You Know
- Many lenders will hold a rate for 90 to 120 days while you shop.
- Some lenders let you adjust if rates drop during the hold, others do not.
- Most variable products can convert to fixed later, terms vary by lender.
A real choice faced by buyers in Regina and Saskatoon
A couple in Regina had a 120 day hold through their bank. They worried they would miss savings if rates eased. We compared a protected hold with a flexible option from a different lender. They chose a fixed rate with friendlier prepayment terms, and kept room to refinance later. The lesson is simple. Picking a rate is only part of the plan, the terms behind it matter just as much.
What is a rate hold
A rate hold is a promise to honor a quoted rate for a set period, usually 90 to 120 days. If rates climb while you are house hunting in Saskatoon or Regina, your quote stays protected. If rates fall, you may be able to update your quote, but policies differ.
Ready to secure a hold. Start here: Purchase pre approvals.
What is a floating rate
A floating rate, also called variable, moves with the lender prime rate. Payments can change if the Bank of Canada adjusts policy. Floating options often start lower than fixed, and can benefit if rates decline later.
Pros and cons at a glance
Why people choose a rate hold
- Certainty while you shop
- Protection if rates rise
- Great for first time buyers who need predictable payments
Trade offs with a rate hold
- You might miss a drop unless your lender allows adjustments
- Product choices can be limited under some hold programs
Why people choose floating
- Lower starting rates in many cases
- Fast benefit if rates ease
- Often more flexible conversion and prepayment options
Trade offs with floating
- Less certainty in monthly budgeting
- Payments can rise if policy rates climb
What we see in Saskatchewan right now
Saskatoon and Regina buyers value protection during active shopping periods, which makes a hold attractive. Renewals coming up after older low rate terms put a lot of weight on payment stability, while some move to variable to capture possible savings with a plan to convert later. The right path depends on your budget cushion and timelines.
Case example, a Saskatoon family compares both paths
They weighed a fixed at a posted hold versus a variable that started a bit lower. We ran side by side numbers with realistic changes in rates. If rates slipped even a little, the variable won in year one. They chose variable, with a clear plan to convert if needed. The key was access to more than one lender and a focus on penalties and terms, not just rate.
Helpful facts to keep in mind
- Typical rate hold window sits between 90 and 120 days across many lenders.
- Many pre approvals are issued within 24 to 48 hours once documents are in.
- Variable rate products track the lender prime rate, which follows Bank of Canada policy moves.
Want current rate context. Check the latest lending rates page.
How a broker helps you pick a smart path
- We compare 50 plus lenders and show clear pros and cons
- We explain penalties, prepayment rules, and conversion rights
- We align the mortgage with your cash flow and goals
Learn more about working with a broker here: Saskatoon Mortgage Broker Professional.
Related links on this site
- Mortgage renewals in Saskatoon and Regina
- Mortgage refinancing in Saskatoon
- Debt consolidation across Saskatchewan
- Home purchase mortgages
- Secure online mortgage application
- Frequently asked questions
Top 10 FAQs
1) How long does a rate hold last
Most programs run 90 to 120 days. Exact terms depend on the lender and product.
2) Can I switch lenders after locking a rate
Yes. You would need to reapply. Brokers can often help match or beat a quote if the market shifts.
3) Are floating rates risky in Saskatoon and Regina
They can be if your budget is tight. If you have room for changes, floating can work, and you can plan to convert if needed.
4) Do I pay extra for a rate hold
No. Holds are typically included with a pre approval.
5) Can I switch from floating to fixed later
Yes. Most variable products allow a conversion. The details vary by lender.
6) What if rates drop after I lock
Some lenders will adjust, others will not. This is where comparing more than one option matters.
7) Which option is better for first time buyers
Many choose a hold for payment certainty. Some still pick variable for a lower starting rate.
8) Is a hold binding before closing
No. You are not committed until you sign your mortgage documents.
9) Can I get a rate hold for a refinance
Yes. Many lenders offer holds for refinances, subject to their policies.
10) How do I pick with confidence
Look at your income stability, savings buffer, and timing. We will show you side by side numbers and help you decide.
Next steps
If you are exploring options in Saskatoon or Regina, let us run the numbers for both paths and show you a clear comparison.
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