Quote:
Originally Posted by bizaro86
You probably only want to take the open if you're sure you're going to sell, and that it'll be soon. Example: If you take the 3.8%, in one year you'll pay 3.8% in total interest and no penalty. If you take the 3% closed and sell in a year, you'll pay 3% in interest, and a 0.75% penalty. (3 months interest ~= annual rate/12*3months)
So you're a bit better off taking the straight closed variable with a 3 month payout penalty than taking the open mortgage. If you're sure you're going to sell in less than a year, then the open makes sense.
The same logic doesn't apply to a fixed, because if rates go down the penalty is based on interest rate differential and could be very high.
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You could also do the HELOC or NBC All in One Account or the Manulife version. There is no payout penalty as you just pay back the amount you owe them when you sell. Interest rates are generally lower than standard mortgage rates. You would likely have fees to bring your business to one of these places though. I have the NBC account and I believe it's Slava (not 100% sure) who has the Manulife type.