It would be ridiculous to accept a loan at 2% when the current rate is 1%. This is especially so when the terms allow one to play the expiry game without incurring any penalty charges.
Lenders usually encounter these scenarios more often with homeowners who are seeking refinancing rather than home buyers.
This is because those looking to refinance their current mortgages to a new one does not have a closing deadline to work within.
Whereas property buyers need to adhere to the projected timeline of events or face potential penalties.
As the lock-in periods tend to take into account the closing schedule of a borrower, seldom do home buyers enter a situation where expiry of locks occur before closing.
Even though lenders loathe lock jumpers, it is within the rights of consumers to exercise these tactics in order to grab a good mortgage rate for themselves.
Home loans are long term financial commitments. And even a slight change in interest rates can have a significant impact over the long term.
Moreover, banks are well known to throw the rule book in the faces of customers whenever there are disputes. So consumers don’t need to feel sorry for them as long as they are playing by the rules.