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31 | O akville B eaver | T hursday,A ugust 11,2022 insidehalton.com On July 13, the Bank of Canada raised its key in- terest rate by a full per- centage point, its biggest increase in more than two decades. The hike means that Canadians with vari- able-rate mortgages will immediately see their monthly interest pay- ments increase. For home- owners who aren't consid- ering switching to a fixed- rate mortgage, there are other options. According to Jordann Brown, content manager and spokesperson for Ca- nadian real estate market- place, one option is to lengthen your amortiza- tion period. The amortiza- tion period is the time it takes to pay your mort- gage in full. Spreading out your re- maining mortgage bal- ance over a longer term can help you lower month- ly mortgage payments and give you some extra wig- gle room in your budget -- at least until interest rates and high inflation stabi- lize. The downside of lengthening your amorti- zation period is that be- cause it will take you lon- ger to repay your loan, you will pay interest over a longer period of time. "Stretching out an am- ortization seems almost counterintuitive because most homeowners dream of the day their mortgage is paid off completely," said Sung Lee, a mortgage expert at rates.ca. "This is an option you can use in challenging environ- ments just to get your fi- nances in order." If, for example, you originally had a 25-year amortization and you're ahead of your payment schedule, Lee says you could speak to your finan- cial institution about re- turning to your original amortization or a more manageable period. However, Brown cau- tions that extending your mortgage's amortization can sometimes require you to refinance, which can trigger fees or a new, higher mortgage rate. "You'll need to weigh the cost of refinancing against the benefit of a lower monthly payment," said Brown. Suppose you have a home equity line of credit (HELOC). In that case, Lee recommends Canadians look into moving other high-interest debt pay- ments -- such as personal lines of credit, car loans and student loans -- onto their existing HELOC for short-term cash flow re- lief. "You have to look at how much interest you're paying overall across all your liabilities," said Lee. But, generally, your monthly mortgage pay- ment is a fixed cost and difficult to lower. "If you're looking to reduce your monthly housing costs, consider tackling the variable expenses such as utilities or home insurance," said Brown. HOW CAN I SAVE ON MONTHLY MORTGAGE PAYMENTS BESIDES SWITCHING TO A FIXED-RATE MORTGAGE? Metro Creative photo SRIVINDHYA KOLLURU MONEY MATTERS Spreading out your mortgage balance over a longer term can help lower monthly mortgage payments and give you some wiggle room in your budget. Heading to the Cottage, going Camping or having a Getaway? Stop by and pick up all your grilling needs and other great eats! PleaSe Call 905-854-5230 Fire uP tHe BBQ and See you Soon... ask us about our catering packages..... there's something for everyone! Let us cater your next event from Family Favourites, BBQ Party or Elegant Affair! Check out our menus at www.internationalmeats.ca Too busy to cook? Check out our Single Meal Plans: 12 meals for $99.00 11269 Guelph Line, Campbellville See us on international MeatS & deli BBQBBQour BuSineSS iSBuSineSS taSte Great!BBQ