Open mortgage: A short-term mortgage that can be paid back at any time, in whole or in part, without penalties. The interest rate is generally higher than the rate of a closed mortgage for the same term, so this type of loan is suitable for borrowers who expect to repay a significant portion of their mortgage soon.
Closed mortgage: A mortgage with terms of 6 months to 5 years, which offers the security of a fixed rate for a longer term. The interest rate is lower than that of an open mortgage and advanced payments can be made.
Fixed rate: Rate that remains stable until the end of the term. With a fixed rate, credit charges and the due date of a loan can be calculated right away. It can apply to both open and closed mortgages.
Variable rate: The variable rate fluctuates based on the Caisse prime rate during a mortgage term. This allows borrowers to benefit from possible rate decreases and, consequently, pay back their mortgage sooner. If the rates fluctuate, payment amounts remain the same; only the amortization period (number of years necessary to pay back a loan) varies proportionally.
Among the following profiles, choose the one that best describes you.
You’re looking for rate and payment stability.
Stable rates and payments:
- Closed Fixed Rate
- Open Fixed Rate
You prefer stable payments, but you want to take advantage of low rates. You have some tolerance for rate fluctuations.
Variable rates and stable payments:
- Closed “5-in1” Yearly Rate Resetter Mortgage
- Closed Protected Variable-Rate Mortgage
You want to take advantage of low rates. You are moderately sensitive to interest rate and payment fluctuations.
Variable rates and payments:
- Closed Reduced-Rate Mortgage
- Open Regular Variable-Rate Mortgage
You’re looking for an extremely flexible, tailored financing tool. You want to be able to group all your loans in a single loan or to diversify your risk or loans based on your projects.
Versatile Line of Credit