Fixed or Open? We give your borrowers an option.
Fixed terms are the norm for most borrowers, but can leave your client locked into their rate and subject to a prepayment charge should they wish to pay out their loan early.
What if your client is expecting a change in their circumstances in the near future? An open term might be the right solution. In an open term, the loan can be paid off at any time without incurring a prepayment charge.
Open term mortgages are great for borrowers who:
- are planning to move within 12 months
- are expecting a financial windfall that would exceed prepayment privileges granted under a fixed term mortgage
- need short term cash to invest in a business or start-up
- are going through the settlement of a divorce or separation
Open terms tend to have a higher interest rate, but provide value by not having a prepayment charge to contend with. The term is designed for flexibility ensuring that the higher interest rate is only short term. When your client’s situation firms up, they can convert into a fixed term at any time.
Bridgewater Bank Gateway Open Mortgage
The Gateway Open Mortgage by Bridgewater Bank provides a short term open mortgage solution for your client’s needs. Reach out to our BDMs today to see what Bridgewater Bank can do for you and your client. For more detailed information, find out more on our Gateway Open Mortgage product page.