How much lower are our rates? See for yourself below.
Last updated: March 21, 2023
Whether you have an open or closed mortgage, will determine your ability to make pre-payments to your mortgage without penalties. With an open mortgage, you have the freedom to make unlimited amount payments to your mortgage principal whenever you want each year. Keep in mind that open mortgages typically have higher mortgage interest rates compared to a closed mortgage.
With a closed mortgage, you are allowed to make annual prepayments but have a limit. Most Canadian mortgage lenders will allow you to pay 10% to 20% in prepayments every year without penalties, however if you pay more than that, you will have to pay prepayment penalties.