We offer open and closed mortgage types; along with the option to convert between a variable closed mortgage term to a fixed-rate closed mortgage term without any penalties. This offers the flexibility to change before the end of your term and provides piece of mind knowing you’re not locked into one type for the entire duration.

• Open Mortgages: Offers flexibility to make large payments and potentially pay off the mortgage before the term is complete but may have larger interest rates attached.
• Closed Mortgages: Has a pre-determined interest rate and pre-determined pay-back period. To pay off the mortgage sooner, could mean a financial penalty depending on the terms of your loan.
• Convertible Mortgages: Allows the homeowner to change the type of mortgage during the term. You could start with an open mortgage and then lock into a closed mortgage.

With a fixed rate mortgage your rate stays the same for the whole term of your mortgage and you can relax knowing what your payments will be. A fixed-rate mortgage is available as open, closed or convertible and in terms from 6 months to 10 years.

A variable rate mortgage typically will offer a lower interest rate than a fixed rate mortgage. Your mortgage payment remains the same the whole term, however, the interest rate will fluctuate with any changes in our prime interest rate. If interest rates go down, you could pay off your mortgage faster as more of your payment will go towards paying off your principal. If the prime rate goes up, more of your mortgage payment will go towards covering interest costs. A variable rate mortgage is available as open or closed on a 5 year term, and you can switch over to a fixed rate mortgage any time with no penalty or fee.

Whether you choose a fixed rate or a variable rate mortgage, take advantage of these mortgage features:

• Choose from flexible payment terms: weekly, bi-weekly, semi-monthly and monthly
• Save money by opting to increase your payments by up to 20% each year
• Pay your mortgage down faster by opting to prepay it by up to 20% of the original amount each year

When you decide on a fixed or variable mortgage rate you also decide on the amount of time you are committed to that rate. These can range from six months to several years, most common is 5 years.

• A short-term mortgage generally offers a lower interest rate than a longer-term mortgage. When current rates are high, and you think rates may drop, choosing a short-term mortgage lets you lock in for a shorter period. A short-term mortgage may also be a good option if you plan to sell your home or pay off the mortgage early.
• A long-term mortgage generally offers a higher interest rate than a shorter-term mortgage. When current rates are reasonably low, choosing a longer-term mortgage secures the interest rate for a longer period of time and makes budgeting easier.

Prepayment charges may apply when you prepay your mortgage balance before the maturity date. Use our mortgage prepayment charge calculator to estimate what it may cost to pay all or part of your closed mortgage before the term ends.

To learn more about prepayment penalties, visit the website of the Financial Consumer Agency of Canada at: https://www.canada.ca/en/financial-consumer-agency/services/mortgages/reduce-prepayment-penalties.html.