With another increase to Prime Rate in the cards for October, (unless you have a static payment), those with a variable rate are seeing another increase to your payment. I know this hasn't been an easy ride. I do very much believe that what comes up, must come down. If you can't handle the increases anymore, please reach out to me so that I can run some numbers for you. You may have some options.
For those with a static payment variable mortgage- you may now have reached your trigger rate.
The Trigger Rate is the rate that with an increase to prime would push the net rate resulting in the full payment being interest only. Any further increase in prime after that point would result in additional interest being capitalized into the mortgage, which would increase the outstanding balance.
Make sure you are aware of what the trigger rate of your variable mortgage is. You may want to consider increasing your payment or putting a lump sum payment towards your mortgage in order to combat the continued increase of interest rates.
For those with a static payment variable mortgage- you may now have reached your trigger rate.
The Trigger Rate is the rate that with an increase to prime would push the net rate resulting in the full payment being interest only. Any further increase in prime after that point would result in additional interest being capitalized into the mortgage, which would increase the outstanding balance.
Make sure you are aware of what the trigger rate of your variable mortgage is. You may want to consider increasing your payment or putting a lump sum payment towards your mortgage in order to combat the continued increase of interest rates.