How to save $1000's from the bank | Do this before you start looking!

The Secret to saving thousands from your bank may be easier than you may have thought. When you purchase a home, securing a low interest rate could save you $$$.

A rate hold 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. Find out how you can benefit today

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Timestamps below: 0:00 | Just getting started 0:22 | We are the Germyn Group 0:44 | Story-time with Darin 1:35 | Interest you pay to the banks 2:31 | Rate Holds? What are they 3:39 | Bank of Canada rates 4:02 | Process of how to start 4:42 |

More great videos on the topic:

Mortgage rates video:

Mortgage from Brokers not Banks:

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About the Germyn Group: The Germyn Group consists of Darin Germyn, Personal Real Estate Corporation, and Adam Howsam. Two realtors located in the Fraser Valley looking to help our clients get it right, the first time, when buying or selling real estate. Darin has been in the real estate industry since 2007, and has had the luxury of helping over 500+ families in real estate. Darin was the former President of the Fraser Valley Real Estate Board in 2019, and top 1% in the FVREB for volume.

Darin has also been featured on News 1130, CKNW, CTV News, Global News, Business Vancouver, Real Estate Video Influencers, Three Best Rated, The Georgia Straight, Country 105 & Real Estate Magazine

Transcript below:

So here's your problem.

You want to buy a home and are just

getting started and you are afraid there's

the possibility of an interest

rate hike coming from the banks.

Have you heard the rate hold

being offered by the bank?

What is it and why is it important?

Well, if you are a would-be home buyer,

a rate hold can be an advantageous tool

to make sure that you absolutely

win in getting the lowest

interest rate on your mortgage.

We are the Germyn group.

Be sure to like this video and subscribe.

So you do not miss out on any of our

videos on how you can make the most

of your buying or selling experience.

We are releasing new videos each week

and just like this one, you'll be

glad that you watched and subscribed.

We know you only have ONE chance

to either buy or sell your home.

So we are here to help you get it right.

So rate holds are critically important.

There's a story, one that I was told by a

senior realtor back when I first started.

And what that story was, was what are

the two most expensive things that most

people buy in their lifetimes?

This is a group of young Realtors who are

in a training program at the time.

So we all sort of looked around

at each other kind of confused.

And as you could guess,

most people knew number one was surely

the purchase of their first home.

But the second, of course,

was one that a lot of people

had guessed was maybe a car.

And the senior realtor kind of shook his

head and said, no, that's

certainly not what it is.

So what was it?

It was your mortgage.

Think about it,

when you take out a mortgage

on a property, especially in today's age,

where mortgages are so low because

of the rates, but also high

because of the property values.

Think of the amount of interest that you

pay to the banks over

the course of a mortgage.

The amount of interest you pay

to the banks is absolutely incredible.

And over the course of a lifetime

of that mortgage, whether it be 25,

30 years or even if you pay it down early,

the amount of money you

give to the bank is insane.

Here's a quick example.

One of the best 5 year fixed rates

on a 25 year mortgage right now is 1.9%,

which is historically low.

On a mortgage loan amount of $500,000,

over the course of 25 years,

you will pay the bank approximately

$127,000, and the number goes

up after your term expires.

If the rates increase over the 25 years

of your mortgage, a minor increase of only

a quarter percent takes your interest rate

up almost another $20,000, and a full 1%

increase, over $70,000 more expensive.

So you get it.

It's a ton of money,

and you know it's a necessary evil

because, of course,

you're getting a mortgage, but it really

matters what mortgage rates you pay.

So a rate hold is

something that the majority of lenders

will offer to would-be home buyers

that are purchasing a new

home who need a mortgage.

This is where the bank will guarantee you

the lowest rate, or today's rate

for anywhere between typically 90 to 120 days

120 days being usually the longest

rate hold available with most lenders.

Once you've created an application

with a mortgage broker,

whether it be online or with one directly,

they can submit it to an available lender

that offers a rate hold

on an interest rate for you.

What is great is that you want to take

advantage of all of this without

even having a property being attached

to it, because maybe you haven't even

found one yet or started looking.

Now, it's important to know that this rate

hold does not commit you to working

with a lender,

nor does it commit you to working with

the mortgage broker who submitted it.

And it does not hurt your chances

of receiving an approval down the road.

Assuming you and your mortgage broker

have not submitted multiple rateholds

and plan to use a 3rd

or maybe a 4th lender.

But the advantage of this is that we know

these ultra low interest rates will

not last or stay this low forever.

The bank of Canada has been very

forthcoming as of when this video was

filmed during the 4th wave of Covid-19,

that everything should continue

on as planned,

and the interest rates for mortgages will

likely be raised sometime at the end

of Q2 or Q3 of 2022.

Okay, great.

Okay, so here's the bad news.

The videos stopped rolling, but the good

news is I know what I still want to say.

So, for example,

on day 1, you submit your application

to a lender for a fixed interest rate

and 60 days after that interest rate

is moved up by a 0.25%.

As long as your mortgage closes

in the next 60 days,

you are protected and you can keep

your lowest interest rate that was

originally offered to you.

What is also great is that if rates go

down during this time and prior to your

mortgage closing, you can also take

advantage of the lower interest rate.

Once your rate hold expires,

there is nothing stopping you

from submitting another rate hold.

It will just be subject to another

current interest rate

on the day of the re-submission.

So there you have it.

That is the benefit of getting a rate hold

and making sure that you take

advantage of this service.

There's two other great videos

that I want to mention on our YouTube

channel that you'll definitely

want to check out as well.

One is simply explaining the differences

and false advice that many home buyers get

between getting a fixed or variable rate

mortgage and include some information that

you will likely not get from the bank.

The other video is the actual difference

in the people that can

offer you mortgages.

If you're curious on the difference

between getting your mortgage

directly from a bank versus a mortgage

broker, you definitely need

to watch this video as well.

You want to make sure that you know your

options for getting a mortgage

when you buy a home.

And lastly, be sure to check out our

website for all the resources

for buyers and sellers.

And while you're there.

Pick up our free PDFs on either maximizing

your home's value by up to 5% in a weekend

or the top 6 mistakes home buyers

make every time and how to avoid them.

You only get one one chance to buy or sell

your next home, so let us

help you get it right.

Be sure to subscribe to this video and we

will look forward to seeing you next time.

Thanks for watching.

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