Variable closed just means that if you have the right to lock into a fixed rate at any point in the term, in your case five years...you do not pay any penalty, you just must lock in for a term that is equal or more than the remaining months on your closed variable term...example; you have 36 months left on the variable, you must take a fixed rate for a term of 36 months or more.

IRD or Interest Rate Deferential is a formula the banks use to calculate mortgage penalty if you decide to break the mortgage with your current lender. The IRD formula is used in a case where the current posted rates are lower then your mortgage rate. This is done in order to have a bigger penalty if you are breaking your mortgage for a better rate.

ON Canada - get a one year open mortgage