For 20 per cent of homeowners, their mortgage payments aren't getting them closer to paying off their home: Here are 4 ways to get out this cycle of debt

Basically, there’s also the risk you’ll end up paying more than your home is actually worth because you’re paying a disproportionate amount of interest.

If you have a variable-rate mortgage and are facing negative amortization — or fear you will be soon — here are some steps you can take to help protect yourself against it.Article contentIt may seem obvious, but it must be said: If your mortgage payments increase, putting down more money can help to offset the new monthly amount. Of course, you need to have the cash on hand to be able to do this.

“If a customer feels they may be close to entering into a negative amortization,” said Baldrich, “increasing payments proactively, through frequency or amount, as well as lump sum payments, can help keep amortization in line with the original contract.” If you have a closed variable-rate mortgage, you can still make a lump-sum prepayment, but you might have to pay additional interest. For example, a closed-rate interest mortgage from CIBC, will charge three months’ interest on the amount that you prepay.With a variable-rate mortgage, you have the option to convert to a fixed-rate mortgage at any time.

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