What is the difference between a closed term mortgage and an open term mortgage?

An open mortgage term can be repaid in part or in full any time without paying a prepayment charge.

A closed mortgage contains certain restrictions on the amount you can prepay on your mortgage balance. If you pay off your mortgage before the end of the term, or prepay more than is allowable according to the mortgage prepayment options set out in your Mortgage Loan Agreement, you may have to pay a prepayment charge.

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