If you have a variable rate mortgage and your mortgage payments are getting bigger with every interest rate hike, you might be wondering if there’s a way to lower your mortgage payments. Yes, there are.
What are the OptionsÂ
The easiest one is changing the payment frequency. If you are on accelerated payment option, you could change it to the normal payment frequency – subject to the terms and conditions of your mortgage. Generally, all it takes is a call to your bank/mortgage lender. But remember, this would only make a slight difference in your payment amount.
If you wish to reduce your mortgage payments more, there are other options to explore. For example, increasing your amortization or refinancing for better rates, terms and conditions.
With more interest hikes expected in the coming days, the earlier you act the better it would be for your finances. Your options will depend on your current mortgage and your personal circumstances.
