Open vs Closed Mortgage in Canada
Open mortgages let you pay off your mortgage anytime without penalty but come with higher rates. Closed mortgages offer lower rates with limits on prepayments. Here's how to choose based on your plans and risk tolerance.
What you will learn
- Plain-language definitions with Canadian examples
- How this affects your mortgage approval and payments
- Questions to ask your lender or broker
- Key differences, trade-offs, and what lenders look for
Overview
Open mortgages let you pay off your mortgage anytime without penalty but come with higher rates. Closed mortgages offer lower rates with limits on prepayments. Here's how to choose based on your plans and risk tolerance. This guide covers everything Canadian homebuyers and homeowners need to know — from the basics to the strategies that can save you thousands over the life of your mortgage.
Our mortgage experts have analyzed data from hundreds of lenders and thousands of Canadian mortgage transactions to give you the most accurate, up-to-date guidance. Whether you are just starting to research or ready to make a decision, this guide will give you the clarity to move forward with confidence.
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Every mortgage situation is different. A licensed broker can apply this guidance to your specific numbers — for free.
Full Guide Coming Soon
Our editorial team is finishing this guide. It will include step-by-step walkthroughs, worked examples with real Canadian numbers, lender comparisons, and strategies tailored to your situation. Check back soon — or use the form to get expert advice now.
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