Mortgage Types - Open or Closed Term Mortgages

Kelleway Mortgage Architects

An Open Term Mortgage provides the maximum flexibility
When you have some extra money, it's often a good idea to pay down your mortgage, in order to save on interest costs. An Open Mortgage lets you prepay any amount of your mortgage any time prior to maturity without a penalty.

It may be ideal for you if you are expecting to receive additional funds during the course of the mortgage and want to pay down the mortgage before the term ends. It's also a good option if you are planning to sell your home and not port the mortgage to another home.

A Closed Term Mortgage offers the lowest rates
Closed mortgages involve a strict repayment schedule of a specific amount with optional limited lump sum payments and payment increases. However, this is the most common type of mortgage term offered in today's market.

Call Glen Kelleway at 604 476 0053 or tollfree 1 866 476 0053 or e-mail glen@mtgitright.com to discuss the pros and cons of Open and Closed Term Mortgages.