Inflation In Canadian Mortgages

Canadian mortgages that are currently on a variable rate, have been concerned about the onset of inflation. There is potential for an increase in the prime rate to go up by 3.00% over the next 24-48 months. The best strategy for clients to do is to increase there payments right now to a 4-5% level. This way they will be paying down even more principal of the mortgage. By making the extra payments, everything above the original payments will be going directly to your Principal. This way you are paying down your mortgage even faster and preventing the payment shock from happening down the road.