Rising Mortgage Rates will be Difficult for Many Canadians
With Financial Institutions announcing increases in mortgage rates this week, more Canadians will find it challenging—if not impossible—to balance their household budget.
If you are already committed to housing payments that might feel too high, don't panic and make a bad decision. Make some choices about prioritizing first, and get ready to consider making changes with your housing payments later.
Since a home is most people's biggest asset, see if it can generate some income to get you by. You may be able to rent a room to a student or offer your storage space for rent. For example, if you have a 2 bedroom apartment and don't need the second parking spot it comes with—but the guy down the road needs a spot to park his motorcycle, rent the space to him for extra cash. That little bit extra might just be enough to help you make do in a bad situation.
Next week we will discuss ways you can protect yourself from rising interest rates, but for now, you can find all sorts of budgeting help and budgeting tips by checking out our budgeting resource page.
Can you go through either a) Debt Reduction Restructuring, and/or b) Bankruptcy and keep your Mortgage if it is Paid Up?
Yes, it is possible to do both, but it depends on your situation. It would be a good idea to sit down with a Credit Counsellor and see what your best options are.