Closed Mortgages

A closed mortgage offers the security of fixed payments for terms from 6 months to 10 years. The interest rates are considerably lower than open mortgage. Nowadays, they offer as much as 20% prepayment of the original principal, and that is more than most of us can hope to prepay on a yearly basis. If one wanted to pay off the full mortgage prior to the maturity, a penalty would be charged to break that mortgage. The penalty is usually 3 months interest, or interest rate differential.

Fixed-Term Mortgages
Fixed-Term mortgage lets you pay a fixed interest rate during the term you choose. Generally a Fixed term mortgage is offered at a lower rate than an open term mortgage. With this mortgage you also have the option of paying off any or all of the balance owing on the mortgage at any time, but with an interest penalty. Mortgages up to 95% of the value of your home are eligible. Customize your fixed term mortgage with amortization up to 35 years to manage your payments and cash flow.

Fixed-Term Mortgages
• Prepay up to 20% of your original mortgage amount once a year, without penalty, to decrease the amount of interest you pay
• Increase your payments up to 20% once a year, without penalty, to decrease the amount of interest you pay
• Add the cash back option to give yourself extra funds for renovations and other expenses
• Enjoy terms from six months to ten years