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What Is Open And Fully Closed Mortgage
Mortgage lenders in Canada offer different types of mortgages, from open mortgages with predetermined notice or penalty and such with no penalty to partially open mortgages and fully closed mortgages. When choosing a mortgage type, it is important to consider whether a portion of the principal or the entire principal can be repaid before the term of the loan. This consideration is important as it reduces the cost of borrowing, by saving money in interest charges. The mortgage is repaid quicker than it was originally specified.