Open Mortgage is defined as:

• A. A mortgage that can be paid off, refinanced or renegotiated without penalty; some lenders require notice or penalties
• B. A mortgage that cannot be prepaid
• C. A mortgage that never allows refinancing
• D. A mortgage limited to fixed term

Answer: (A)

Open mortgage is about flexibility in repayment and renegotiation. It lets you pay off the loan or refinance/renegotiate the terms without a penalty, though some lenders may require notice or impose a small penalty in certain situations. This means you can adapt the loan as your finances or rates change, which is the defining feature of an open mortgage. The other descriptions imply you cannot prepay, cannot refinance, or are tied to a fixed term, which do not describe an open mortgage.