An open mortgage is one with flexible options to increase your mortgage repayments, either by increasing your regular payments or via a lump sum. A closed mortgage, on the other hand, will penalize you for paying off all or part of your mortgage early. While pre-payment penalties can be significant, closed mortgages also come with much lower interest rates than open mortgages.
In Canada, closed mortgages are more common because they offer lower interest rates, and most people don’t need the extra flexibility of an open mortgage. Open mortgages are generally used when you are expecting to receive additional cash to pay off your mortgage. This might be due to an inheritance, proceeds from the sale of a home, or a significant increase in your income.
What happens to your mortgage when you leave Dubai?
November 7, 2022 at 10:46 amLeaving Dubai doesn’t have to mean losing your home. There are a number of options available to you if you need to leave the city, including:- Selling your property- Renting out your property- Taking a sabbatical from work- Working remotely you’re thinking of leaving Dubai, it’s important to understand what will happen to your mortgage.