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5 Mortgage Secrets

MORTGAGE PAYMENT SHOCK Mortgage Secret 4 of 5

Buying a Home

Don’t get shocked by mortgage rate jumps…


Payment Shock is a nasty surprise that many people are not prepared for, simply because no one is telling them about it.

Payment Shock occurs when we have received a low-interest rate for a 3-5 year term, only for interest rates to rise back to more historically normal levels throughout the period of the mortgage.

Meaning, when you need to go get your next mortgage, you’ll have to pay a much higher payment that you weren’t expecting. In some situations, these increases can be very significant.

For example, based on a $300,000 mortgage amount and the current rate environment we’re in, I estimate you could potentially see the following impact on your mortgage payment over a five year period:

Rate Today Payment Today VS Rate in 5 Years Payment at Renewal
2.49% $1,349.00 4.47% $1,593.69

Payment Shock = $244.69 Per Month INCREASE.


To combat “Payment Shock” and educate our clients on how to protect themselves, we implement the Mortgage Payment Optimization Plan, a strategy we developed that’s currently used by top mortgage professionals across Canada.

A ClearHome mortgage professional uses a state of the art system that allows you to set the rate that you want to protect yourself from. For example, if you believe that rates may increase to 4.47% over the term of your mortgage, one of our professionals enters that information into the system and it generates a recommended pay increase schedule and sets reminders throughout your term to help you stay on track.  

It’s that easy!

This allows you to make small incremental adjustments to your monthly payment, so you will be prepared for the potential higher payment at the end of your term, plus pay thousands of dollars in additional principal on your mortgage!

By implementing this strategy you save:

Total Eliminated

Mortgage Payments


Mortgage Balance By


Amortization By

$86,6059.38 $9,878.12 4.5 Years

Just to be clear, when fixed interest rates increase the overall market your interest rate and payment will remain the same.  

It is only when you and I decide to increase your payment to match rising market interest rates, will your mortgage payment increase.

Of course, by following our recommended payment increases the bonus is that all your extra payments go directly to the principal of your mortgage.  This is where we hack and slash years off your long-term amortization.

My Mortgage Payment Optimization Plan will help you prepare for increasing interest rates, protect you from future payment shock, and (all at the same time) significantly reduce your mortgage balance, which results in scratching years off your mortgage amortization.

Want to get this tool working for you? Want to feel safe from rising rates?

Contact me today and we start getting this working for you.

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