What is the difference between a "Closed mortgage and Open mortgage"?

With a closed mortgage, the interest rate is locked in for the full term of the mortgage and you must pay a penalty if you want to break the contract prior to the end of the term.

An open mortgage can be repaid either in full or part any time without penalty. Open mortgages are usually available in the terms of six months or one year. Open mortgages are recommended for people who are planning to move in the near future or for people who believe interest rates may be going down. Interest rates for open mortgages are usually higher than for closed mortgages because of the added flexibility.

"Sincere Service ...Nothing Less"