Close: typically fix 5 year term. Penalty may apply when you terminate before the end of the term. * E/ @1 k+ h& B8 r k$ l: H! N% u 0 H9 u0 e! o% b& h* m; |Open: typically up to 5 year term. No penaly and no restrication when you choose to terminate the mortgage. So the rate is typically higher.