The economy is forecast to take a turn for the worse in the next few years, with a recession expected to hit Canada in 2022 or early 2023.
While this may seem like bad news for homeowners, there are actually some things you can do to protect yourself from the potential effects of an economic downturn.
One of the most effective ways to recession-proof your mortgage is by making sure you have a large enough buffer built up in your savings account. This will help you make your mortgage payments even if you experience a drop in income or lose your job altogether.
It's also critical to have a solid plan for how you'll manage your debt if the economy takes a turn for the worse.
If you're carrying a lot of debt, now is the time to pay it down or look to debt consolidation to help you gain more cash flow, which will be necessary during a recession.
And finally, make sure you have a thorough understanding of your mortgage terms and conditions. This will help you know what to expect if interest rates start to rise or your property value declines.
You shouldn't just sign off on your mortgage renewal as the renewal rates will probably be higher than your current rate. It is wise to explore your options before committing to another term.
By following these tips, you can help protect yourself from the potential impacts of an economic downturn and keep your finances on track.
We would be happy to review your mortgage and help you customize a recession-proof solution. Please feel free to call or write. Call 647-773-4849 or email firstname.lastname@example.org
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By: Sarah Colucci
Senior Mortgage Agent, Lic. M14000929