🔹 Open Mortgage - a type of loan that may be repaid at any time during the term without any additional costs or penalties.
🔹 Closed Mortgage - a type of loan that should remain unchanged for the term You agreed. It means there are restrictions on what You can pay towards Your loan before the end of the term. But You are still allowed to do so.
In Canada, closed mortgages are more common, and the reason is simple - they offer lower interest rates. If You are the one who wants to make stable payments, then it might work for You the best. On the other hand, if You are looking for a short-term mortgage - an open Mortgage might be a solution. If You decide to close the Mortgage at any time You can do so without any penalties.
There is a mortgage solution for every case. Don’t think You qualify? Talk to our licensed mortgage agents and see Your options:
Inna Bogdanov 416.268.0004 | Inna@ikfinancial.com
Katerina Markevich 416.388.8153 | Katerina@ikfinancial.com