If your mortgage payment is straining your budget, especially after a renewal at a higher rate, you have options.
1. Shop your renewal or switch lenders
Don’t automatically accept your lender’s renewal offer. Switching lenders at renewal is often free, and straight switches no longer require the stress test.
2. Extend your amortization
Stretching your remaining amortization (for example, back to 25 or 30 years) lowers each payment. You’ll pay more interest overall, but it can give you breathing room.
3. Consolidate high-interest debt
If credit cards and loans are part of the squeeze, rolling them into your mortgage can lower your total monthly payments significantly. Learn about debt consolidation.
4. Consider a blend-and-extend
Some lenders will blend your current rate with today’s rate and extend your term, avoiding a full penalty.
5. Change your payment frequency
This won’t reduce your total cost, but matching payments to your paydays (weekly or bi-weekly) can make budgeting easier.
Not sure which option fits? Book a free review and we’ll compare them for you.