Get the perfect rate for your home

A closed-term mortgage, such as a 5-year closed mortgage, is a home loan where you commit to regular payments for the full term. You can’t fully repay, renegotiate, or refinance before the term ends without paying significant prepayment penalties. In return, closed mortgages typically offer lower interest rates than open-term options.

With a variable-rate mortgage, your interest rate changes in response to economic conditions and Bank of Canada rate adjustments. Your mortgage agreement explains when and how these changes happen. Monthly payments may stay the same, but if rates fall, more of your payment goes toward the principal; if rates rise, more goes toward interest.

An open-term mortgage, such as a 5-year open mortgage, gives you maximum flexibility. You can make lump-sum prepayments, pay off the loan early, or refinance at any time during the term without facing prepayment penalties.

A fixed-rate mortgage means your interest rate and monthly payments won’t change during the entire term (e.g., 5 years). This protects you from increases in market rates, since your rate stays the same.

With a high ratio mortgage, your down payment can be less than 20% of the home’s purchase price. Because of this lower down payment, the mortgage must be insured against default, which adds extra costs such as an insurance premium — but it can help you get into a home sooner.