What Is An Open Mortgage?
WHAT IS AN OPEN MORTGAGE?
An open mortgage means you can repay any or all of your principal amount, anytime, without penalty. Open mortgages are typically variable rates and shorter terms.
Open mortgages offer maximum flexibility. They are usually for borrowers who require short-term financing.
In return for this flexibility, open mortgages typically have higher interest rates than closed mortgages. The majority of mortgages are closed mortgages.