Open or Closed Mortgage

Each type of mortgage has slightly different features which appeal to different people. While an open mortgage gives you the flexibility of making extra payments or paying off the mortgage completely, a closed mortgage has a lower interest rate. Some people may take comfort in knowing that the interest rate will not increase during the term of a fixed mortgage, but others may accept fluctuations in their variable rate mortgage in exchange for potential long term savings or the chance to pay their mortgage faster. The right mortgage for you is the one that best matches your overall comfort level and fits with your income and lifestyle.