As more and more homeowners face mortgage renewals at surprisingly higher interest rates, some are facing the dreaded prospect of having to sell a home they can no longer afford.
But experts say while that option may be on the table, there are steps financially stretched homeowners can take before putting a “For Sale” sign on their front lawn.
The next step would be to gather all potential ideas on paper to find ways of diversifying their income sources. That might mean a second job, asking for a raise at work or renting a room in the house, Western-Macfadyen suggested.“It’s not the time to focus on cutting out lattes,” she said. “You want to make sure you’re making some big changes and it needs to be sustainable.
The mortgage amortization, picking the most suitable option between fixed and variable rates and finding the best rate offer could also help soften the burden of higher rates upon renewal. “It is a bit misleading,” he said. “Whether you are low-income or a high-income person, provided you have a mortgage, these rates are affecting you.”However, someone with a higher income may be able to adjust better to higher borrowing costs by moving around assets, capital or retirement savings, Salgado said.“When we work with lower-income people with a higher mortgage, they may not come with so many other investment accounts that you could tweak or move around to help offset those costs.
“You want to then take action,” she said, which may include selling, foreclosure or surrender of the home.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Israel Hopes It Will Avoid Rating Cut on War, At Least for Now(Bloomberg) -- Israel should manage to avoid its first ever rating downgrade thanks to sound finances, unless the war with Hamas drags on for a long time, a ...
Read more »
UK Landlords Are Paying 40% More Mortgage Interest Than Year AgoThe bad news keeps coming for Britain’s lettings market, as a surge in mortgage payments pushes more landlords to the brink and threatens to pile extra misery on tenants.
Read more »
Homeowners on the brink face tough choice of selling home as mortgage payments climbTORONTO — As more and more homeowners face mortgage renewals at surprisingly higher interest rates, some are facing the dreaded prospect of having to sell a ...
Read more »
Homeowners on the brink face tough choice of selling home as mortgage payments climbTORONTO — As more and more homeowners face mortgage renewals at surprisingly higher interest rates, some are facing the dreaded prospect of having to sell a home they can no longer afford.
Read more »
Homeowners on the brink face tough choice of selling home as mortgage payments climbAs more and more homeowners face mortgage renewals at surprisingly higher interest rates, some are facing the dreaded prospect of having to sell a home they can no longer afford.
Read more »
Nerves on edge in Vancouver amid day of protests, escalating Israel-Hamas conflictVancouver's Jewish community was on high alert Friday and pro-Palestinian demonstrators marched in the city amid a call for a global day of protests over the Israel-Hamas conflict.
Read more »