A mortgage that cannot be prepaid or renegotiated before the end of the term without the lender’s permission and an interest penalty is known as a closed mortgage. This type of mortgage typcomey offers lower interest rates but comes with restrictions on early repayment or changes, ensuring the lender receives the expected interest over the term.
*The information provided is for educational purposes only and should not be considered legal advice. For specific legal concerns or questions related to your mortgage, it is always best to consult with a qualified legal professional.*