A fixed mortgage offers you the security of locking in your interest rate for the term of your mortgage. This way you will know exactly how much principal and interest you will be paying on the mortgage during the term. Terms range from 6 months to 10 years. Fixed rate mortgages offer some form of pre-payment, from 10% to 25% of the original mortgage balance each year, depending on the lender. If you wish to pay off your mortgage in full, there will be a penalty of either 3 months simple interest, or an Interest Rate Differential (IRD). The benefit of this mortgage is that the rate is lower than an open mortgage, making it a more popular option especially if you do not plans to pre-pay it in full during the term you select.