As a first-time homebuyer, we understand the importance of flexibility. Our Mobile Mortgage Specialists bring the branch to you, accommodating your schedule and providing personalized service, ensuring you can easily navigate the journey to your first home without any unnecessary stress.
Mortgage
Open or closed mortgage
Keep hearing the terms ‘open and closed mortgage’ but not sure what sets them apart? It's a bit like choosing between streaming services – open mortgages are like your customizable playlists, while closed mortgages are more like your trusted radio station. Let's tune in together to find the mortgage rhythm that best suits your needs!
Open mortgage
An open mortgage offers you a bit more flexibility. It allows you to pay off your mortgage balance at any time without incurring prepayment charges, giving you the freedom to make changes to your mortgage terms, or even refinance without penalties. With terms typically ranging from six months to five years, open mortgages offer a short and flexible repayment schedule, catering to those who value adaptability in their financial plans.
Things to know
✔ Generally, open mortgages have higher interest rates because of the added flexibility you get in return.
Closed mortgage
A closed mortgage is like having a reliable map for your mortgage journey. Your terms are set from the start and stay unchanged until the end of the agreed-upon period. If you want to change or break a closed mortgage, you’ll most likely have to pay a penalty fee.
Things to know
✔ If you break your fixed-rate mortgage contract, you’ll most likely be charged a penalty fee. This fee varies by financial institution.
✔ Closed mortgage terms can range anywhere from six months to five years at Conexus.
Is an open or closed mortgage best for you?
When deciding if you should choose an open or closed mortgage, ask yourself these questions:
Are you expecting a large amount of money, like an inheritance or bonus from work, that you might want to use to pay down your mortgage faster?
Do you plan on moving or selling your home before your mortgage term ends?
Are you comfortable having a higher interest rate in exchange for added flexibility?
If you found yourself answering yes to any of these questions, an open mortgage may be the right choice for you, as it provides the adaptability you need without the worry of penalty fees. However, for personalized guidance tailored to your unique mortgage needs, it’s always recommended to consult with one of our Mobile Mortgage Specialists or Financial Advisors.
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