Open Mortgage

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Tel.	(416)987-0008
Fax.	(416)987-6636
Email	info@amortgages.ca

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Convertible Rates

Term	Bank Posted Rate	Our Best Rate*
6 Month	4.55%	4.25%

Variable Rate **

Term	Bank Posted Rate	Our Best Rate*
1 Year	N/A	2.35%
3 Years	N/A	2.05%
5 Years	2.55%	2.00%

Fixed Rates

Term	Bank Posted Rate	Our Best Rate*
1 Year	3.70%	2.44%
2 Years	3.85%	2.80%
3 Years	4.35%	2.90%
4 Years	4.94%	3.69%
5 Years	5.49%	3.74%
7 Years	6.60%	4.20%
10 Years	6.75%	5.00%
100% Financing	5 years	5.39%

* APR

**Based on Prime Rate 2.75%

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Lic#10261

Open Mortgage

Written by Administrator

Monday, 02 November 2009 00:37

Open Mortgage This allows you to pay back the borrowed funds without notice or penalty. There are two types of open mortgages:

Fixed rate mortgages; the term is usually fairly short (6 months to a year) although Online Mortgage Explorer contains some longer open terms; and the interest rate will be higher than on a closed mortgage.
Variable Rate Mortgages (VRM's) are usually open (and are "collateral" type mortgages) but recently, several institutions have introduced closed versions.

A common application for open mortgage use would be in cases where you would not want to lock into a longer term. For instance, your property is currently for sale or you are waiting for a better rate in order to lock in. Generally, this option is the most expensive mortgage option, with higher interest rates than FRM or VRM and outside of the above examples we rarely recommend our clients to use this mortgage.