Amortization: Total number of years needed to repay the mortgage loan. (Typically between 15 and 25 years.)

Convertible: Fixed-term mortgages (typically six- or 12-month terms) that can be converted to longer terms without penalty charges.

Variable: A mortgage rate that fluctuates with the financial institution's lending rates. Variable rate mortgages are reviewed annually to ensure payments are sufficient to retire the mortgage in the remaining amortization period.

Fixed: An interest rate that is locked in for the term of the mortgage (usually six months to seven years).

Open: A mortgage on which you can pre-pay any amount without penalty.

Closed: A mortgage with limited pre-payment options, beyond which a financial penalty is levied (often 90 days’ interest).

Penalties: Usually levied when payments to a closed mortgage exceed the amounts allowed under the mortgage agreement.