An open loan is a mortgage that allows the borrower to repay part or all of the outstanding balance at any time without incurring prepayment penalties. For Canadian real estate investors, this flexibility is valuable when planning to sell a property or refinance quickly, though open loans typically carry higher interest rates than closed mortgages in exchange for that freedom.
Related Articles
- Bridge Loans Explained: Buy Before You Sell in Canada
Bridge loans let you purchase before selling your current property. How they work for residential and commercial deals, costs, and real Canadian strategies.
← Mortgage & Real Estate Glossary 2026 · Editorial standards