How to prepare for higher Canadian mortgage rates

Worried about rising Canadian mortgage rates?

Mortgage rates have been bouncing up and down lately.  For obvious reasons, home buyers are worried about the “up”.  But there’s no need to panic; what you need is some smart strategies to prepare, financially.

5 tips to prepare for higher mortgage rates:

1. Don’t take the money.

If you’re buying a new home, don’t be tempted to borrow the maximum amount your lender will allow.

2. Do more than the minimum.

If you have a variable-rate mortgage, build in some wiggle room by setting your mortgage payments higher than required.

3. Plan to pre-pay.

Find out what your mortgage pre-payment privileges are and pay whatever you can.

4. Conduct a reality check.

Find out what your mortgage balance will be at renewal and use our online mortgage calculator to project what your payments could be if you renewed at a higher rate. Start to ease up to your new payment level so at renewal, it’s like a merge lane!

5. Watch your bad debt.

Be cautious about any credit card or other high-interest debt.

Getting prepared for higher rates is not about panicking, it’s about being prudent.  If you want to discuss some options, please don’t hesitate to call me.   I’d be happy to help you determine your best personal strategies to prepare for rising rates!

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