You are gving up certain things in order to get a lower cost.

• Typically will pay a minimum pre-payment penalty.
• May include a sales clause where you can't change the lender until you sell that property.
• Another restriction can be a collateral charge (see our section on this for a full breakdown).

With a restrictive option you need to make sure you can keep up with ability to make pre-payments.

With a non-restrictive option we usually see:

• No extra pre-payment charges.
• 3 month interest penalty.
• Flexibility to port your mortgage.
• Can leave that current lender at any time without pre-payments.

The cost difference between these two options is usually as little as .1%.