Mortgage Rate Holds from the bank

[Kimberly Theriault]

Hi there. I am working with a bank to pull equity from my primary residence to finance my first investment property. 

We’ve had a rate hold for some time, and now the final papers are showing a higher rate and I’m being told it’s because rates have climbed so much in the last 90 days (I’m in Canada). 

It was explained that rate holds are essentially a hold of a discretionary discount (Ie 1.8% lower than posted rate) but as the rate has risen so much the discretionary discount lands me at a different rate. The mortgage guy has apologized for confusion etc etc and he’s been lovely to deal with, but this doesn’t sound right? What is the point of a rate hold if it doesn’t hold your rate? 

The difference is nearly 9k over the 5 years and we’d now be refinancing at a rate higher than our current mortgage. 

I’m interested in peoples thoughts on this!! 

Thanks 🙏🏻