Tips if you are Over-Extended on your Mortgage

We may not have the same problem as the US, but nearly 9% of indebted households need 40% or more of the gross income to pay towards their mortgage.

If you see problems coming then you should be pro-active about it. Below are five options to consider if you are feeling overwhelmed by your mortgage payments. Read the fullĀ Financial Post article here.

1. Extend amortization: This may help decrease your monthly payments.
2. Seek better terms: Seek out different lenders if your situation has changed.
3. Renew at a floating rate: There is more risk but lower interest cost in floating rate mortgages.
4. Sell it and rent: In markets with high home prices as a result of speculative building, absentee owners will often rent at relatively low cost. That makes for good deals for renters.
5. Discuss a consumer proposal: The homeowner can avoid outright bankruptcy and foreclosure of the home by talking to creditors.