Closed Mortgage | Open Mortgage | |
---|---|---|
Is this mortgage right for me? | Ideal if you are not planning to pay off your mortgage in the short term | Ideal if you are planning to pay off your mortgage in the near future |
Can I pay off the mortgage during the term? | Yes, but a prepayment charge will apply | Yes, with no prepayment charge |
Are interest rates typically higher or lower? | Lower interest rates | Higher interest rates (because of the prepayment flexibility) |
Can I convert my mortgage to another term? | Yes, to a fixed rate term of equal length or longer | Yes, to any other term, at any time, without a prepayment charge |