top of page

Navigating Mortgage Uncertainty: 7 Smart Strategies to Secure Your Future


With so much uncertainty around interest rates, making a mortgage decision can feel overwhelming. Should you go fixed or variable? Lock in now or wait? And how can you keep flexibility without paying more than necessary?

The good news is that there are strategic ways to position yourself for success—whether you're getting a mortgage this week, planning ahead, or simply looking for more financial security. Here are seven key strategies to help you navigate today’s market confidently.


1. Variables Are Still Viable—For the Right Borrower

If you’re risk-tolerant and expect to hold your mortgage for at least five years, a variable rate still makes sense. Why? It provides more flexibility and could come out ahead in the long run based on projected rate trends. That said, if budgeting certainty is a priority, consider a fixed-payment variable over an adjustable-rate mortgage (ARM) to avoid fluctuating payments. I personally have an adjustable mortgage and each BOC meeting over the last 6 or so months I am grateful I did not convert to fixed.


2. Fixed Rate? Lock It in Early If You’re Not Closing Yet

For those closing in a few weeks, locking in a 5-year fixed rate now can provide a safety net in case rates spike. If rates drop before closing and the savings make sense, you can always switch to a shorter term. Just be aware that variable-rate discounts may worsen if current trends persist. This often happens in these kinds of rate environments.



3. Looking for Stability? Consider a Hybrid Mortgage

One of the most underutilized mortgage strategies is a hybrid mortgage—part fixed, part variable. This approach gives you rate diversification, balancing stability and potential savings. While not every lender offers them, they can be a smart choice for uncertain markets. This is what I have with my mortgage and structure. Want to learn more about a Hybrid? Send me a note.


4. Don’t Ignore Early Renewal Options

Homeowners with tight finances and a shorter remaining term should review their lender’s early renewal policies. If rates climb further, early renewal could help you lock in a lower rate before it’s too late. Keep an eye on inflation trends—if core inflation numbers trend upward, it’s a sign rates could rise again. The benefit to us working together is I can hold a rate for 120 days where as your bank will make it for next payment date. In order for us to manage risk or mitigate risk let's start sooner than later.


5. Need More Flexibility? Extend Your Amortization

Cash flow is king, and longer amortizations can help lower monthly payments if rates rise. While it’s easy to reduce amortization later with prepayments, increasing it after the fact is much harder. If you need financial breathing room, extending your amortization now could be a smart move. Don't let this add fear to your lifestyle. Extend now but if you come into funds for a tax return or bonus please note it is a great idea to make a lump sum to the mortgage to lessen that amortization for you. 30 years now does not have to mean 30 years forever.


6. Secure a Line of Credit While You Qualify

With economic turbulence on the horizon, having extra liquidity is invaluable. If you qualify, adding a secured or unsecured line of credit now can provide a buffer for unexpected expenses or investment opportunities. Once borrowing costs rise, securing new credit could become much more difficult.


7. Choosing Fixed? Pick a Lender With Fair Conversion Rates

If you’re in a variable-rate mortgage and plan to switch to a fixed rate when the “time is right” (best of luck with that timing), make sure your lender has fair, transparent conversion rates. Not all lenders treat conversions equally, and you don’t want to get locked into an uncompetitive rate when you decide to make the move. I have had clients break and pay a penalty as the lender they were with were not offering lowest conversion rates. Its always best to seek a second opinion when making these types of decisions. I am here to help.


Final Thoughts

There’s no one-size-fits-all answer in today’s mortgage market, but the right strategy depends on your risk tolerance, financial goals, and time horizon. Whether you’re shopping for a new mortgage or planning your next move, staying informed and working with a knowledgeable mortgage broker (like me!) can help you make the best decision for your future. Remember you are not all the same as clients, you might need to see things in different ways - the lowest rate is not always the best option if cashflow or fear of the future/ unknown keeps your mind racing it might be time to try another strategy.


Ready to chat about your goals? Visit www.emilycallme.com





Comments


©2022 by Port Credit Mortgages Inc.

Emily Miszk Mortgage Broker
bottom of page