Published 21 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
A pre-approval and rate hold are not a promise to lend on a specific home. The commitment letter approves the actual property but lists conditions, such as appraisal and document checks. Waive your financing condition only when those conditions are satisfied.
Buyers often hear three terms used loosely: pre-approval, rate hold and commitment. They are not the same thing, and the differences matter on the day you waive your financing condition.
Pre-approval
A lender’s preliminary review of your income, credit and debts. It gives you a price range and often a rate hold. It is not a promise to lend on a specific property.
Rate hold
A lender reserves a rate for a period, commonly around 90 to 120 days, so that if rates rise while you shop, you keep the held rate. If rates fall, many lenders will give you the lower one. The hold ends if you don’t close within the period.
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Commitment letter
Once you have an accepted offer, the lender underwrites the actual deal and issues a commitment. It confirms the amount, rate, term and product, and lists conditions, such as:
- An appraisal supporting the value.
- Verification of income and employment.
- Proof of the down payment and where it came from.
- Title insurance, property insurance, and for condos a satisfactory status certificate.
The trap
A commitment “subject to” conditions is not the same as all conditions being met. If you waive your financing condition before the lender’s conditions are satisfied, and the appraisal comes in low or a document fails, you are still bound to close.
How to protect yourself
- Send every document the lender asks for the same day.
- Ask your broker or lender which conditions remain before you waive.
- Keep your financing condition long enough for the appraisal to come back.
- Don’t change jobs, open credit or move money around until closing.
The takeaway
Send documents fast, ask which lender conditions remain before waiving, and keep your finances unchanged until closing.
Talk it through with me
Get a first-time buyer plan
Tell me your savings, income range and target area. I will send a realistic price range and next steps.
I will come back to you personally, usually the same day. If it is urgent, call or text 833-330-1925.
Frequently asked questions
Is a mortgage pre-approval a guarantee?
No. The lender still needs to approve the specific property and verify your documents.
How long does a mortgage rate hold last?
Commonly around 90 to 120 days, depending on the lender.
What is a mortgage commitment letter?
The lender’s written approval for a specific property, usually with conditions to satisfy before funding.
When is it safe to waive financing?
When the lender confirms the conditions in the commitment are satisfied, not just when the commitment is issued.
Sources
- Financial Consumer Agency of Canada — mortgages — pre-approvals and commitments
- OSFI — minimum qualifying rate
Related reading
- Credit Score for a Mortgage in Canada: What Lenders Look For in 2026
- Mortgage Broker vs Bank in Ontario: Which Should You Use?
- Mortgage Pre-Approval in Ontario: What It Actually Guarantees
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Etobicoke. I work with buyers and sellers across Toronto and the GTA, with deep local knowledge of the west end. Four-plus years of active GTA transactions and over $100 million in sales volume. Every market figure here comes from TRREB’s published tables and every rule from RECO or Ontario legislation, so you can check all of it without asking me.
Reach me at connect@jatindua.com or 833-330-1925, or book a call.