What is Open end Mortgage?

It’s a different type of mortgage where the borrower can ask for more credit against the one he has already obtained and of course there’s a maximum set. This newly obtained credit is secured by the same property as the old one. While there’s open end mortgage the opposite of this exists also the closed end mortgage which doesn’t allow for the borrower to ask for more credit and use the same real-estate to secure the new loan.

For example you paying off your mortgage and you have opted for the open end mortgage option. This means that you can ask for a loan form your lender and he will take in consideration the money what you have already paid off and he will set a maximum amount what you can borrow. If he grants the loan then you can secure it with the same property as the old loan is secured.