TORONTO — As more and more homeowners face mortgage renewals at surprisingly higher interest rates, some are facing the dreaded prospect of having to sell a home they can no longer afford.
The next step would be to gather all potential ideas on paper to find ways of diversifying their income sources. That might mean a second job, asking for a raise at work or renting a room in the house, Western-Macfadyen suggested.She also warned that in dire cases, drastic measures might be needed to lower spending.
As the mortgage renewal approaches, don't assume the first offer presented by a lender is the best rate, he said. "It is a bit misleading," he said. "Whether you are low-income or a high-income person, provided you have a mortgage, these rates are affecting you." "We see that happening in our community," he said. "A lot of older generations would like to see the fruits of their hard work benefit the family while they're still alive.""Mortgage is typically the very last thing that someone would let go," said Western-Macfadyen. "They probably maxed out their credit cards and lines of credit and at that point, they just don't see any other alternatives.
Talking to a licensed insolvency trustee could also be an option to help alleviate the stress of selling the house and managing debts. Charlie Munger is a fraction as wealthy as Warren Buffett. He'd be worth over $10 billion if he kept all of his Berkshire Hathaway stock.