In 2023, Canadian interest rates are higher than they have been in 15 years and expected to decrease in 2024 and beyond

For many homeowners, payments on variable rate mortgages, and lines of credit have been increasing as rates increase and this can certainly make it difficult to keep up.  I have spoken to many homeowners who feel they need to sell given the increase in payments and higher cost of living.

What I can offer in the video are some tips we use to help our clients lower their payments to preserve cash through 2023, which is expected to be the peak in this interest rate cycle.

First, on renewal switch to 30-year amortization, this reduces your payments.  Most lender allow prepayment so you can always make additional payments if you goal is to payoff your mortgage soon, but lowering your payments provides flexibility when you need it.

Second, consolidate all other payments into mortgage, usually the lowest interest rate and offers the longest amortization.  Additional payments can include tax arrears, car payments, credit card debt, or any other regular payments.

If you are looking for a smaller amount, we have financing for vehicles (2016 and newer) at up to 150% of value.  It is possible to access equity in your vehicles and also to extend the amortization.

Third, add a line of credit on renewal so that it is available for emergencies and investment opportunities.  In addition, if there are penalties with your existing mortgage, we can add a second mortgage which can have no payments to consolidate debt

Again, my view is that we are going to be in for a tough first half of 2023 and hopefully these suggestions help clients dealing with challenging financial conditions.

Give me a shout if you want to understand your options 416-769-1440 or email with any questions.