Closed Mortgages

The only country larger than Canada in the world is Russia. As the second biggest country in the world there are, obviously, many different types of people taking out mortgages in Canada. More than 35 million people call Canada home, and a significant portion of these people are ready to move into their new home. Most of these people will require a mortgage to make this move. One of the most popular types of mortgages today is the closed mortgage. The benefit of closed mortgage is that it almost always offers a lower interest rate than open mortgages. Why do more people not take advantage of closed mortgage interest rates? Many of them aren’t aware of closed mortgages or how to utilize this option when buying their home. Fortuitously, now there is a simple way to apply for a closed mortgage. This way is of course Smarter Loans.

What is Smarter Loans? It is an online tool you can utilize that makes applying for a closed mortgage easier than ever before. After looking at a computer for hours at work, the last thing you want to do is spread unnecessary time skimming through websites yourself at home. This time can be decreased significantly using Smarter Loans’ directory located on this page. In this directory you will find companies that you can apply to for your closed mortgage.

This directory is extremely easy to use. Search it at your leisure, and when you are ready, click “Apply Now” to apply directly for your closed mortgage with a provider of your choice. You can also have us choose the most suitable company if you prefer, and instead click “pre-apply” and Smarter Loans will and have the most fitting option contact you with an offer.

We can help connect you with the top closed mortgage and other types of mortgage providers in Canada.

Pre-Apply For A Mortgage Now

Top Closed Mortgages Providers in Canada

Interest Rate
$20,000 - $10 Million
6 months - 5 years
$10,000 and up
Varies (Home Equity Loans)
12 Months
$20,000 - Unlimited
12 to 60 months
$50,000 and Up
1 - 10 years
$50,000 and up
Rates starting at 5.44%
5 years

What is a Closed Mortgage and How Does it Work?


While most Canadians are aware of the difference between a fixed and variable rate mortgage, not as many of us are aware of the differences between an open and closed mortgage.

If you’re a homeowner with a mortgage, chances are pretty good that it’s a closed mortgage. Open mortgages just aren’t that popular in Canada. When you go to the bank to inquire about mortgage options, the bank probably will only present you with closed mortgages. In most instances closed mortgages make the most sense.

As its name suggests, a closed mortgage comes with restrictions. It has restrictions in terms of how much you can pay off during your mortgage term. With an open mortgage, you can pay off your mortgage in full during your mortgage term. This comes in handy if you’re expecting a huge inheritance or if you’re lucky and win the lottery. Not so with a closed mortgage. You’d likely face a costly penalty if you paid off your mortgage early.

You’re probably wondering why anyone would anyone choose a closed mortgage over an open one. The main reason is to save money. Closed mortgages typically come at a lower interest rate than open mortgages. So unless you expect a huge cash windfall, you should almost always go with a closed mortgage over an open mortgage.

Closed mortgage tend to come with a lot more term options than open mortgages. You may be able to choose a closed mortgage at a term length of one year, two years, three years, four years, five years and 10 years, whereby you may only have a single term to choose from for an open mortgage.

Why You Might Choose a Closed Mortgage

Unless you’re planning to pay off your mortgage in the near future, closed mortgages almost always make sense.

When choosing a closed mortgage, you’ll have to make many decisions, including fixed versus variable and the length of your mortgage term.

Many Canadians shop solely for a mortgage based on the lowest mortgage rate. While your mortgage rate matters, it isn’t everything. Other features to consider with a closed mortgage include prepayments, penalties and portability.

Closed mortgages have restrictions in terms of how much you’re allowed to pay off your mortgage. However, most closed mortgages come with some prepayment privileges. Many homeowners assume every lender has the same prepayments, when that isn’t the case. If you want to aggressively pay down your mortgage, then it makes sense to look for a lender with generous prepayment privileges. Lenders typically let you make extra lump sum payments and increase your mortgage payment to pay it down sooner. By taking advantage, you can save yourself a lot of money in interest over your mortgage term.

Closed mortgages come with penalties for breaking them early. You can help avoid them by choosing a mortgage that’s portable. With a portable mortgage, you may be able to take your mortgage with you without paying a hefty mortgage penalty if you sell your existing home and buy a new home during your mortgage term.

Pre-Apply For A Closed Mortgage Here

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