Legal Definitions - open-end mortgage

An open-end mortgage is a type of mortgage that allows the borrower to borrow additional funds against the same property. This means that the borrower can take out more money from the lender without having to go through the process of applying for a new loan.

For example, let's say a borrower takes out a $100,000 open-end mortgage on their home. After a few years, they need to make some repairs to the house and want to borrow an additional $20,000. With an open-end mortgage, they can simply request the additional funds from the lender and, if approved, the lender will add the $20,000 to the existing mortgage balance.

Open-end mortgages are useful for borrowers who may need to borrow additional funds in the future, such as for home improvements or unexpected expenses. They can save time and money by avoiding the need to apply for a new loan each time they need more money.