Overview of Variable Rate Closed and Open Mortgages

Overview of Variable Rate Closed and Open Mortgages
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