What’s the difference between the Caisse’s “variable,” “open” and “closed” mortgages?
The Caisse’s variable mortgage is one where the rate changes according to the prime rate. It allows you the flexibility to pay it off at anytime without penalty or to lock in the rate whenever you wish, again with no penalty. Amortization is from 5 to 25 years.
The Caisse’s open mortgage is available for either conventional mortgages (25% down) or CMHC mortgages (5% down). It can be paid off any time in the term you have selected (6 months or 1 year). After your term is up, your mortgage must be renewed for another term. The rate for an open mortgage is higher than a variable mortgage, but you can lock in your rate at any time for a longer period without penalty.
Our closed mortgage gives you the security of locking in your interest rate for a longer term. You will get a lower interest rate with a fixed-rate closed mortgage plus you may be able to negotiate a better rate. The Caisse offers flexible payment options, and the closed mortgage offers a steadier payment schedule for homeowners whose financial situations are unlikely to change and who feel they can afford the monthly payment.