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Rate Protection Plan

(6 months prior to renewal)

Rate Protection Plan 180, allows you to lock in your interest rate for 120 days. This will prevent your rate from rising, and, in the event that rates decline or level off, it will also allow you to get a lower rate and extend your closing.

You can lock in a rate to protect yourself if rates increase, and then take advantage if rates dip or trend down by having us adjust your closing and your rate. We will match the market and move you from lender to lender if the need arises. There’s no catch and there are no additional fees.

If you are 180 days from your renewal date and the rates start to rise, we will reserve that rate for 120 days. Assuming the rates continue to rise, at closing you will only need to pay the interest to maturity of 60 days to your current lender. Before you close, we will present you with options so you can make the choice to continue, or readjust with the market, until your true maturity. If rates were to rise even by a quarter percent (¼%), the savings may be well worth the cost of interest to maturity.

Our goal would be to extend your closing to the actual renewal date and obtain the lowest rate for the chosen term, under our No Fee Transfer program.

Rate Protection Plan Process

The process is easy:

1. Complete an online application or contact our office.
2. We’ll obtain the approval and present you with the commitment.
3. We will follow-up with any missing documentation.
4. We will place you on a Rate Protection Plan and watch the market — and we’ll automatically lower your rate if rates drop.
5. We will confirm your closing details and you will advise us if you wish to continue with rate protection.
6. If we can transfer your mortgage to another lender we will arrange for one of our Closing Service specialists to meet you and finalize the mortgage transfer.
7. We will then transfer your mortgage and you can continue your payments with the new lender.

Let The Mortgage Centre specialists show you how!