A loan which is specifically drafted to allow the borrower to borrow further funds at a later date without requiring the preparation and registration of new mortgage documentation.

A mortgage with a provision that the outstanding loan amount may be increased upon mutual agreement of the lender and borrower.

A Home Equity Line of Credit (HELOC) is a typical example of an Open Ended Mortgage. A homeowner can withdraw (borrow) against the credit line as often as he wishes (up to the preset limit of the credit line), hence the mortgage is "open-ended".

 

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