Bank of Canada mortgage payments: How to prepare for a rate hike

As the Bank of Canada continues to raise interest rates, many Canadians are feeling the pinch on their mortgage payments. If you're one of them, don't panic! There are steps you can take to prepare for a rate hike and make sure you can still afford your home.
1. Review your budget
The first step is to take a close look at your budget and see where you can cut back. You may be able to find some areas where you can save money, such as eating out less or cutting back on your entertainment spending.
2. Increase your income
If you're able to, increasing your income can help you offset the cost of higher mortgage payments. You could ask for a raise at work, start a side hustle, or get a part-time job.
3. Refinance your mortgage
If you have a variable-rate mortgage, you may be able to refinance to a fixed-rate mortgage. This will lock in your interest rate for a period of time, so you won't have to worry about your payments going up as rates rise.
4. Talk to your lender
If you're really struggling to make your mortgage payments, you should talk to your lender. They may be able to work with you to find a solution, such as a payment deferral or a reduced interest rate.
5. Consider your options
If you've exhausted all other options, you may need to consider selling your home. This is a big decision, so you should weigh your options carefully before making it.

Here are some additional tips to help you prepare for a rate hike:

Make extra payments on your mortgage now, while rates are still relatively low.
Set up a pre-authorized payment plan so that your mortgage payment is automatically deducted from your account each month.
Keep your credit score high so that you can qualify for the best possible interest rates.
Shop around for the best mortgage rates before you refinance.

I know that preparing for a rate hike can be stressful, but it's important to remember that you're not alone. There are millions of Canadians who are in the same boat. By following these tips, you can make sure that you're prepared for whatever the future brings.