Open-term and fixed-term mortgages

Open term or fixed term — which type of mortgage is right for you?

An open-term mortgage lets you make payments ahead of schedule without paying a penalty, so it’s a good choice if you think you’ll be able to pay your mortgage off early.

With a fixed-term mortgage, you enjoy a lower interest rate compared to the open-term mortgage, and a predictable payment schedule, but you must pay a penalty if you make extra payments above a certain amount, or prepay the mortgage in full before the maturity date.

For example, if you expect to receive some cash soon—through an inheritance, a bonus, the sale of your home, or other means—an open-term mortgage may be the right fit. But if you prefer to make regular payments over the long term, you’ll probably save more money with a fixed-term mortgage because you’ll pay a lower interest rate.

Whether you choose an open-term or fixed-term mortgage, you can choose from a range of mortgage term lengths and payment schedules to create a mortgage that fit your needs.

Features and benefits

With an open-term mortgage, you can:

  • Choose a mortgage term of 6 months to 5 years
  • Choose either a fixed rate or variable rate.
  • Repay any portion of your mortgage at any time
  • Pay no penalty for early or extra payments
  • Pay no penalty for converting to another mortgage type early
  • Assign it to another party

With a fixed-term mortgage, you can:

  • Choose a mortgage term of 6 months to 10 years
  • Enjoy a predictable payment schedule (weekly, bi-weekly, monthly, or semi-monthly)
  • Choose either a fixed or variable interest rate.
  • Get some repayment flexibility, with options to:
    • Prepay up to 20% of your original balance once per mortgage year
    • Increase payments by up to 20% once per mortgage year
  • Cash back* option available.
  • Assign it to another party

Every open-term and fixed-term mortgage at Vancity comes with the re-advanceable feature:

  • Pay no legal costs on future advances
  • Diversify your interest-rate risk by splitting your mortgage into Homeprime (variable rate) and fixed-rate components
  • Manage your interest-rate risk by having portions of your mortgage mature at different times
  • Switch your Homeprime (variable rate) portion to a fixed rate during the term of your mortgage
  • Use part of your mortgage as a line of credit to fund home renovations, debt consolidation, or an investment property

Mortgage rates

View our current mortgage rates.

How to apply

You can apply for a Vancity mortgage online, at your branch, or by calling the Member Services Centre at 604.877.7000 or toll free at 1.888.Vancity (826.2489).

You can also contact a Vancity mortgage specialist to discuss mortgage options, ask questions, and receive personalized mortgage advice. Our specialists will travel to meet you at your home, office, or any other convenient location. Find a mortgage specialist in your area.

Apply now

*Take out a 3, 4, 5, 7 or 10-year fixed-term mortgage, and we will give you cash back in an amount of up to 5% of the mortgage principal, or up to 2% of the mortgage principal for laneway mortgages transferred from another institution. Cash back is paid on the date the mortgage is funded. If the mortgage is not funded, no cash back will be paid. If you choose to break your mortgage commitment for any reason prior to maturity, you will be required to repay a portion of the cash back received.