Mortgage term
Closed mortgage
Definition
A standard Canadian mortgage: rate and payment locked for the term, with prepayment limits (typically 15%–20% per year) and penalties for early payout. Nearly all renewal offers are closed mortgages.
Closed doesn't mean fully closed — you can typically prepay 15%–20% of the original balance each year without penalty, plus double up on any regular payment. It only means breaking the contract before term end triggers a penalty.