The Difference Between Closed, Open and Convertible Mortgages

By February 16, 2016All Entries, Real Estate
The Difference Between Closed, Open and Convertible Mortgages

Closed, open or convertible? It can be difficult to decide which mortgage is best for your home. Closed mortgages tend to be the best choice if you know that paying off your mortgage may take some time. An open mortgage may be the preferred option if you know you will be able to pay the mortgage off sooner rather than later. A convertible mortgage is similar to a closed mortgage, however leaves you the option to switch to an open mortgage if you so choose. RBC Royal Bank describes the variations in these three mortgages. Click here to see the basic differences to find out which option is best for your home.