A Fixed-Rate Mortgage is a type of home loan that has a single interest rate for the entire term, or length, of the loan.

A Variable Rate Mortgage is a type of home loan where the interest rate is not fixed, but instead, it adjusts at a level above a specific benchmark or reference rate throughout the loan’s term.

Open mortgage rates: These are flexible mortgage rates that allow you to repay any part of your mortgage at any time without a prepayment charge, but often have higher interest rates.

Closed mortgage rates: These are fixed-term mortgage rates with lower interest rates, but they may include prepayment penalties if you pay more than the agreed amount before the term ends.

Open term mortgage: This is a flexible mortgage that allows you to borrow more money from the lender at a later time.

Closed term mortgage: This is a fixed-term mortgage where you cannot increase the principal amount and must repay it by a certain date.

Insured mortgage: This is a mortgage that is protected by mortgage default insurance, typically required when the down payment is less than 20% of the home’s purchase price.

Uninsured mortgage: This is a mortgage that does not have mortgage default insurance, typically applicable when the down payment is more than 20% of the home’s purchase price. Since these home buyers have a larger proportion of equity in their home, they are not required to take out mortgage default insurance.

Mortgage amortization: It’s the process of paying off your home loan in regular monthly payments over a fixed period of time, where initially most of the payment goes towards interest and later, most of it reduces the principal debt.