Do you find yourself stressing out over your high-interest mortgage rates and cash flow issues? You're not alone. Many Canadians are currently struggling with this issue, but there are solutions that can help you get back on track. In this blog post, we'll explore some tips and tricks to help you handle your high-interest mortgage rates and improve your financial situation.
1. Refinance Your Mortgage
One option for handling your high-interest mortgage rates is to refinance your mortgage. By refinancing, you can often lower your interest rate, which will lower your monthly payments and free up some cash flow. Refinancing can be a great option if your credit score has improved since you first took out your mortgage, or if interest rates have dropped since then. Just be sure to consider any fees associated with refinancing and make sure the savings outweigh the costs.
2. Consider a Debt Consolidation Loan
If you're struggling with high-interest debt in addition to your mortgage, a debt consolidation loan may be a good option. With a debt consolidation loan, you can combine multiple debts into one loan with a lower interest rate, which can make it easier to manage your monthly payments and improve your cash flow. Just be sure to compare interest rates and fees from different lenders to find the best deal.
3. Look for Ways to Cut Expenses
Improving your cash flow doesn't always have to involve taking on additional debt or refinancing your mortgage. Sometimes, it's as simple as looking for ways to save money. Consider cutting back on discretionary expenses like dining out or subscription services. You may also be able to find ways to lower your utility bills or insurance premiums. Every little bit can add up and help you free up some cash flow.
4. Implement the cash damming strategy
Cash damming is a CRA-approved strategy that they keep hush-hush. If you're a landlord, this strategy will help you pay less income taxes each year and will start getting tax refunds! You can in turn use these funds as a lump sum payment on your mortgage and aggressively pay down your owner-occupied house mortgage.
Interested in learning more about handling today's high-interest rates? Or my cash-damming strategy?
Let's connect. Book an appointment at www.sylviaho.ca