Whistler Real Estate Listings

Increased competition in the supply of mortgages, as well as changes in borrowers' preferences have led to a dramatic increase in the number of mortgage products available on the market. Borrowers are now faced with far more choice and flexibility in terms of repayment plans, allowing them to select the one that best suits their individual needs. One option for borrowers to consider is whether to choose an open or closed mortgage loan. Open mortgages allow borrowers to prepay a portion of their mortgage or the entire amount at any time with typically only a small administrative fee. Closed mortgages, on the other hand, prevent borrowers from prepaying their mortgage without penalty, except where they are permitted under the terms of their mortgage contract or by the Interest Act. The flexibility of open mortgages comes at a higher cost to borrowers, imposing higher interest rates than an alternative closed mortgage with a similar term. Furthermore, open mortgages ge...