A conventional mortgage requires a minimum down payment of 20% of the purchase price or appraised value of the property, whereas a high-ratio mortgage requires a minimum down payment of 5%.  If you're buying a home and are borrowing more than 80% of the home's value, the mortgage must be insured. This insurance protects the lender against borrower default, and enables them to give you mortgage financing for the purchase of a home with a small down payment.  Mortgage default insurance can make a big difference in how quickly your mortgage loan is approved.

Closed mortgages usually offer lower interest rates than open mortgages of the same term, but open mortgages let you pay off as much as you want, at any time,without penalty.