Interest Rate Locks

What is a “lock-in” or a “rate-lock” on a mortgage?

A lock-in or rate-lock on a mortgage loan means that your interest rate will not change between the day of the lock and the closing of your transaction, as long as you close within the specified time frame and there are no changes to your loan application.

If your rate is locked, it can still change if there are any changes in your loan application, such as:

  • Loan amount
  • Credit score
  • Verified income

  • Common reasons why your interest rate may change, even though it is locked

    Common reasons why your interest rate may change, even though it is locked


    • You decided to change the type of loan you are requesting or the amount of your down payment.
    • The appraisal on the home you want to buy came in higher or lower than expected.
    • Your credit score changes (for example: because you applied for or took out a new loan, or missed a payment on an existing loan or credit card).
    • Your lender could not document your overtime, bonus, or other income.

Interest rates can change daily and sometimes multiple times per day.

The benefit of an interest rate lock is that it protects you from market fluctuations. It is up to you on when you wish to lock your rate. If you choose not to lock your rate – it is known as “floating” the rate.

If you decide to get a rate lock, you should make sure your rate lock agreement is long enough to cover the time until you close on your loan. If you are concerned that your rate lock period might be too short, ask your lender about switching to a longer rate-lock period now.

How long can a rate be locked?

This will depend on the mortgage lender.  30 – 60-day lock periods are pretty standard. 
However, lock periods can be available from 15 – 90 days, and sometimes up to 180 days or longer. The longer the lock period – the higher the fee.

Rate Lock Periods and Fees [1]

15 days

0.283% Credit

30 days

0.253% Credit

45 days

0.083% Credit

60 days

0.047% Cost

90 days [2]

0.417% Cost

180 days [2]

1.25% Cost

Notes: 
[1] Lock period fees are approximate and for illustration purposes only and will depend on loan criteria.

[2] 90 and 180-day lock periods are not available on the Jumbo, High Balance, or ARM products.

[3] 15-day locks are only available after Conditionally Approved status.

[4] Re-locking an expired rate is subject to the standard .25% extension fee or WOM (worst of market) pricing –

whichever is greater.

Tip: Your Loan Estimate will state whether or not your rate is locked but it will not provide you with information about how much it would cost to extend the rate lock, how much you are paying for the specific rate lock period, or whether you could pay more or less for a different lock period.

Check at the top of page 1 of your Loan Estimate to see if your rate is locked, and for how long.

There can be a downside to a rate lock.

  • It may be expensive to extend the lock if your transaction needs more time to close.
  • If rates come down, you can miss the opportunity to lock at a lower rate.

Compare rate lock periods and costs or fees for each: Here is an example comparing the costs or fees associated with the different lock periods. (The fees are based on a loan amount of $600,000).

  • 15-day lock – $1,698 credit
  • 30-day lock – $1,518 credit
  • 45-day lock – $498 credit
  • 60-day lock – $282 cost
  • 90-day lock – $2,502 cost
  • 180-day lock – $7,500 cost

How much does a rate lock cost?

Rate locks are not free – however, you will not see a line-item charge for them on your Loan Estimate. For 30-day lock periods, most lenders do not charge a separate fee since the cost of the lock is often factored into the interest rate. If the rate lock is over 30 days, then you will pay an additional fee for the longer lock period. Also, if you need to extend the term of the rate lock period, there will be an additional fee.

Lock Extensions and Relocks

  • 1st/2nd 5 Day Extension: 0.125%
  • 1st/2nd 15 Day Extension: 0.250
  • 3rd+ 15 Day Extension: WOM or 0.250%
  • Rate Relock (Prior expired rate locks): WOM [1] or 0.250%


[1] WOM – (worst of market) pricing

[2] Extension fees will vary between lenders

Common Questions

  • When can a mortgage rate be locked?

    When can a mortgage rate be locked?


    This will depend on the mortgage lender. Some lenders will allow you to pre-lock your rate once your loan has been registered and pre-approved, with a prospective property address (To be determined address).  Or you may consider waiting to lock until after all your final loan conditions have been signed off, so that you can lock in a shorter time period for a lower fee.

  • What happens if the rate lock expires before closing?

    What happens if the rate lock expires before closing?


    A real estate transaction may not always close on time. 

    If your rate lock should be expiring prior to your closing date, you can extend the lock period but there will be a fee (be sure you extend prior to the expiration date). The fee will vary depending on how many days the lock is extended for. 


    However, if the delay in closing is due to the lender’s fault, the lender may be able to give 2 – 3 days free extension.

  • What if I do not want to lock my rate yet?

    What if I do not want to lock my rate yet?


    If you opt to hold off on locking your rate, it is considered “Floating” the rate.

    When rates are expected to come down, borrowers will float the rate in the hopes to time the market and lock in a lower rate. However, it the market starts to go the other way and rates start to increase, the higher rate can make the difference between staying qualified (staying within your debt-ratio) or no longer qualifying for your loan due to the increased debt-ratio.

  • What happens if I lock my rate and then interest rates go down?

    What happens if I lock my rate and then interest rates go down?


    Unfortunately, you cannot just unlock your rate.


    However, if you locked your rate and thereafter rates rise – Luck is on your side and you get to keep the lower interest rate you locked in.

Note: a) Rate lock policies vary by lender; b) credits, costs, percentages are for illustration purposes and vary by lender.