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  1. Open vs. Closed Mortgage: What's the Difference? - NerdWallet …

    • With closed mortgages, once the terms and conditions are set, they are closed — you can’t change or break them without paying a penalty. The duration of the mortgage term, or how long you’re locked into yo… See more

    Pros and Cons of A Closed Mortgage

    Pros
    1. You’ll pay lower mortgage ratescompared to open mortgages. 2. Lenders may offer prepayment and lump-sum payme… See more

    NerdWallet
    What Is An Open Mortgage?

    Open mortgages are much more flexible than closed mortgages. Not only can you choose to increase your regular payments, but you can also make additional lump-sum payments … See more

    NerdWallet
    Pros and Cons of An Open Mortgage

    Pros
    1. There’s no penalty when increasing your regular payments. 2. There’s no charge when you make lump-sum payments. 3. Refinancin… See more

    NerdWallet
    How to Choose Between Open and Closed Mortgages

    When deciding between open and closed mortgages, ask yourself the following questions: 1. Am I expecting an inheritance or large sum of cash in the near future that I could use t… See more

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  2. The main differences between open and closed mortgages are12345:
    • A closed mortgage is generally a longer-term arrangement of 3-5 years, while an open mortgage is a short-term arrangement of 6 months to 1 year.
    • Closed mortgages have more restrictions and limited flexibility for borrowers, while open mortgages provide more flexibility to prepay your mortgage.
    • You can’t pay off the loan early, refinance or renegotiate the terms of a closed mortgage without incurring a penalty, while open mortgages allow you to prepay as much as you want.
    • Interest rates for closed mortgages tend to be lower than rates for open mortgages, but open mortgages often have higher interest rates.
    • Canadians tend to prefer closed mortgages because they offer better mortgage rates24.
    Learn more:
    A closed mortgage is pretty much the opposite of an open one. Closed mortgages have more restrictions and limited flexibility for borrowers: you can’t pay off the loan early, refinance or renegotiate the terms without incurring a penalty. However, interest rates for closed mortgages tend to be lower than rates for open mortgages.
    www.lowestrates.ca/resource-centre/mortgage/ope…
    For most Canadian homeowners, a closed mortgage offers the best value. The additional flexibility of an open mortgage isn’t needed for most of us, but closed mortgages come with significantly lower rates, which will save you a significant amount of money over your mortgage term.
    www.ratehub.ca/blog/open-vs-closed-mortgage-wh…
    Open mortgages provide you with more flexibility to prepay your mortgage. A closed mortgage limits your prepayments and will penalize you. In exchange for the prepayment flexibility, open mortgages have a higher interest rate than closed mortgages.
    wowa.ca/open-vs-closed-mortgage
    A closed mortgage is generally a longer-term arrangement of 3-5 years and will typically have a lower interest rate than an open mortgage. It has more restrictions and offers less flexibility to make additional payments during the life of the mortgage. Canadians tend to prefer closed mortgages because they offer better mortgage rates.
    hardbacon.ca/en/mortgage/open-vs-closed-mortga…
    The major difference between the 2 types of mortgages is how flexible you can be with your payments. An open mortgage allows you to prepay as much as you want, but often has higher interest rates. On the other hand, a closed mortgage usually has stricter payment rules, but with lower interest rates.
    moneygenius.ca/blog/open-vs-closed-mortgage
     
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