What is the Difference Between Closed, Open and Convertible Mortgages?
Wednesday, July 27, 2016 5:03
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What is an Open Mortgage?
Open mortgages allow you to prepay any amount of your mortgage at any time without a compensation charge.
What is a Closed Mortgage?
A closed mortgage is one that cannot be repaid without prepayment penalties during its term, except as permitted in the mortgage agreement.
What is a Convertible Mortgage?
A convertible rate mortgage starts out as an adjustable-rate mortgage but can be changed to a fixed-rate mortgage after a specific amount of time.
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