Term loan - Fixed rate - Closed

The interest rates and payments for fixed-rate loans and mortgages stay the same for the duration of your selected term. Though you cannot pay off a closed loan without penalty, most lenders will let you make yearly lump-sum payments and/or increase your payment to accelerate the loan repayment.

The MoneyReady App provides a rough estimate of mortgage prepayment penalty. You can see the calculation if you set a sell date on the property before the mortgage is paid off. The penalty is estimated as 3 months' interest or with a 2% interest rate differential, whichever is higher. With a 2% interest rate differential, the penalty is the balance remaining times the number of months remaining in the term, times 2%/12.

Fixed rate mortgages are amortized semi-annually in Canada.

You can set a different rate of interest at the future renewal of each term of the loan in RATES, YIELDS CURRENCIES