A mortgage that allows you to pay off any amount of the principal at any time without penalty. Open mortgages offer maximum flexibility for borrowers who expect to make large lump-sum payments, sell their property soon, or pay off the mortgage in full. The trade-off is a higher interest rate compared to closed mortgages.
Why It Matters
An open mortgage makes sense if you're planning to sell your home soon, expecting a large inheritance or bonus, or want the freedom to pay down your mortgage aggressively. For most GTA buyers holding onto their property long-term, the higher interest rate makes a closed mortgage with prepayment privileges the more cost-effective choice.
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