The Bank of Canada is rapidly raising interest rates in an effort to reduce inflation, cool the demand for goods and services and in turn, make everyday life more affordable for Canadians. For homeowners with a variable rate mortgage, we understand there may be uncertainty about the impact rising rates will have on your mortgage and finances.What happens when rates change:<ul>
<li>When rates increase, your scheduled payment does not increase – rather, more of your payment is allocated to the accrued interest, and less to the principal.</li>
<li>When rates decrease, more of your payment is allocated towards paying down the principal of your mortgage.</li>
<li>When less of your payment is applied to your principal, your amortization will increase, which means it will take longer to pay off your mortgage.</li>
<li>When it’s time to renew your mortgage, your amortization schedule will be brought back to its original timeline. In the case where a rising prime rate has resulted in less of your payment being applied to your principal balance, your mortgage payment will likely increase at the time of renewal, possibly by a large amount.</li>
</ul>Questions? Get in touch with your Mortgage Agent, or let us introduce you to our highly recommended and trusted Mortgage Partner!

Understanding Interest Rate Changes: Variable Rate Mortgages

Natalie’s passion for real estate stems from her upbringing where she was introduced to custom renovations and new home builds from a young age. This has given her the ability to recognize the investment value in properties and a keen eye for design.Natalie completed her degree in Psychology at the University of Guelph. Upon graduating, her entrepreneurial character led her to pursue a career in real estate obtaining her license in 2019 with the goal to help her family, friends and clients achieve their financial and real estate goals. She prides herself on providing attentive and honest services to clients and will go above and beyond to make your experience as easy and enjoyable as possible. Through her extensive and versatile experiences, exceptional customer service has always remained a top priority.Currently living in Hamilton Beach, Natalie loves biking the Hamilton-Burlington waterfront trail, going on trail runs, eating out at local restaurants, trying new recipes and playing with her puppy, Heidi.

Natalie Stoltz