Different penalties for different products
Open Mortgage : These are loans that have no penalty for prepayment. Components of a mortgage “credit line” is often a type of hypothec.
Closed fixed mortgage : Normally 3 months interest or the rate difference for the remainder of the term; the highest of the two.
Closed fixed mortgage long term : For mortgages over 15 years and the penalty for
the first 5 years of the term is the greater of 3 months interest or the rate difference for the remainder of the term, and
after 5 years is only 3 months interest.
Closed variable mortgage : Generally, 3 months interest but it happens that some lenders have only two months of interest and others require six months of interest as a penalty.
Mortgage-type “5 in 1″ : This type of mortgage is popular with certain lenders and the penalty is normally