Lock in your interest rate for the term of your mortgage giving you the comfort that your principal and interest payment will stay the same throughout the term. Terms range from 6 months to 10 years. There are options to pay out the mortgage early, but it is important to know that this will result in a penalty which can be based on a variety of items. Normally 3 months interest or IRD (Interest Rate Differential).
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Take advantage of a lower interest rate normally below prime rate. Terms are normally 3 or 5 year terms and paying out this mortgage earlier normally results in lower penalty as it is based on 3 months of interest. Your payment may fluctuate with increases or decreases in the prime lending rate with no notice, but you do have the option to lock in should you choose.
Full repayable at any time with NO penalty. Interest rates are higher than fixed or variable rate mortgages for this reason and are also based on prime rate.